PDO opens tender for second small-fields service contract
Posted: 31 July 2006
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Petroleum Development Oman (PDO) invites companies to participate in its tender to develop cluster of small oil fields.
Known as the Rima Satellite, the cluster is currently producing 2,100 barrels per day from nine fields. Another nine undeveloped fields are also included in the tender˙s scope. The area has a total of 650 million barrels of oil in place, 27 million barrels of which have already been produced by PDO.
Earlier this year, PDO awarded its first Small-Fields Service Contract to a consortium led by MedcoEnergi , Indonesia 's largest publicly quoted oil and gas company. The award marked a new strategy in developing and managing small and remote fields.
´These service contracts are aimed at raising the production levels of PDO˙s small fields in a cost-effective way, by granting the service provider a high degree of freedom in its operations and offering it strong financial incentives to increase the production of oil,ˇ John Malcolm, PDO˙s Managing Director, said.
´In the meantime, PDO will be able to dedicate its own resources to the development of its larger fields, which currently account for 95 per cent of its oil production,ˇ he added.
In agreements such as this, the contractor does not have any rights to the produced oil or reserves. The fields, together with their associated physical assets and reserves, remain the property of PDO˙s shareholders.
Malcolm pointed out that, besides revit ali sing the development of PDO˙s small oilfields, these contracts also create new business opportunities for local Omani contractors.
´Local companies will undoubtedly get the opportunity to be subcontractors to the service providers,ˇ he said. ´They thus have an opportunity to form partnerships with companies based outside Oman , making things easier for them by, for example, providing local support and assisting them with Omanisation.ˇ
The Rima Satellite Cluster service contract is expected to be awarded in early 2007. Companies with a successful track record in the development and operations of small and marginally economic oilfields are invited to register and answer pre-tender screening questions on PDO˙s commercial website at www.pdotenders.com. |
