Setting a target
Oman sustains production in an era of declining reserves
Posted: 26 February 2007
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Petroleum Development Oman (PDO) is targeting production of between 560,000 and 570,000 barrels per day of oil this year, according to a top company official.
 Last year, the company produced an average of 589,000 bpd with a targeted output yield of 580,000 to 600,000 barrels a day. A total of 249 wells were drilled last year on the company’s Block 6 concession, far exceeding the number of new wells drilled by other Middle East national oil company.
"Gas and condensate production for 2006 was equivalent to 430,000 barrels of oil a day and the trend will continue its upward march as PDO engages in massive gas exploration and development drives," PDO Managing Director John Malcolm said last month.
"One such is the Kauther project, which is expected to be commissioned in early 2008. The scope of development includes the construction of an associated plant capable of processing 20 million cubic metres a day of condensate rich gas."
He said the company’s increasing efforts to enhance oil production will be marked by its new strategy of managing complexity while sustaining production in the long term.
"This includes a three-pronged approach of well and reservoir management, hydrocarbon maturation and project delivery. The geology of Oman is incredibly complex. And the key word in managing this complexity is EOR (enhanced oil recovery) and waterflood (secondary recovery methods). Waterfloods in particular are the key to maintaining oil production in the medium term and we are planning to expand or initiate a total of 15 waterflood projects."
"These tertiary and secondary methods are crucial to sustaining production in an era of declining reserves. For instance, the recently awarded Marmul polymer flooding project for the Al Khlata reservoir of the Marmul field will increase recovery factor by 10%. “Another EOR project – the Fahud steam injection project – is nearing take-off with first steam to be injected into the reservoir in 2008."
But Malcolm, addressing company exectutives in Muscat , said PDO’s production would not be confined to large projects alone. “We estimate that more than half of our oil production by the end of 2010 will come from wells that are not yet drilled and production facilities that are not yet built.
“Throughout the entire decade beginning with 2010, we will have to be completing nearly one major field development project per year." |
