Press Release
FOR IMMEDIATE RELEASE
3 March, 2014
Historic best production and safety performance for Oman’s biggest oil and gas producer
PDO UNVEILS EOR PROJECT PUSH AFTER RECORD YEAR
Petroleum Development Oman (PDO) today announced that it was executing 16 enhanced oil recovery (EOR)
field developments and trials as it reported record production and safety figures in 2013.
The Company is currently engaged in chemical, thermal and miscible gas injection – techniques which are used
to extract heavy or difficult oil – across its concession area and EOR will account for a third of its production by
2023.
Last year, PDO recorded average production of 1.25 million barrels of oil equivalent per day – the sixth
consecutive year it improved performance – and stepped up its drive for unconventional oil and gas.
Furthermore, it added 317 million barrels of oil reserves with total gas-developed reserves increasing by 1.3
trillion cubic feet.
Managing Director Raoul Restucci said: “There has been a concerted effort across PDO to engage efficiently,
responsibly and safely in the exploration and production of hydrocarbons and this resulted in a record-breaking
production performance. This is all the more impressive considering that the year started badly after the
disruption caused by the serious fire at our Yibal field at the end of 2012.
“Additionally, we have also been able to deliver robust reserves additions and explored and tested promising
unconventional oil and tight gas opportunities, as well as make great progress on project delivery.
“As the easy oil supplies dwindle, EOR is going to account for an increasing part of our production portfolio.
PDO is already a world leader in this area but we are now redoubling our efforts to ensure we maximise
production from our fields.”
In 2013, PDO had ongoing production from four major EOR developments at Marmul, Qarn Alam, Harweel
(2AB) and Amal West, which is at an advanced stage of commissioning. The polymer project in Marmul has
reached the milestone of 1 million m3 (6.3 million barrels) of incremental oil recovery in December.
The Qarn Alam steam project, which employs the mechanism of thermally assisted gas oil gravity drainage
recovery – the first time this has been attempted in a carbonate field anywhere in the world - is running fully to
expectation and produces some 25,000 barrels per day (bpd). In addition, the Harweel miscible gas project
showed sustained production levels rising to 30,000 bpd.
Another breakthrough came at the new pioneering chemical injection trial at Habhab, a large tight oil reservoir
with heavy oil, and there has also been a successful steam trial at the installation. In addition, the Company has
EOR pilots at Fahud, Lekhwair, Nimr, Al Noor, Marmul, Amin and Al Ghubar.
The Company reported good progress on its three oil and gas “mega projects” at Rabab Harweel, Budour and
Yibal Khuff. Rabab Harweel alone provides an opportunity to develop more than 200 million barrels of oil by
injecting miscible gas into the seven Harweel oil reservoirs, about 90 million barrels of condensate by recycling
sour gas in the Rabab field and exporting non-associated sale gas.
On exploration, there were very active efforts on the conventional oil exploration front with 12 wells completed
and 12 tested. PDO’s Exploration Directorate booked five discoveries, with a cumulative STOIIP (stock tank oil
initially in place) of just over 348 million barrels. Six conventional gas wells were completed and nine were
fracked and tested, with a very successful hydraulic fracturing campaign at the Khulud tight gas project, PDO’s
first pilot of its kind and one of the deepest tight gas developments in the world.
At the same time, the Company attained the best-ever safety record in its history in 2013, despite the fact staff
and contractors worked over 170 million manhours, an increase of 6% compared to 2012. There was a 10%
reduction in the industrial-related Lost Time Injury Frequency to 0.26 and a 19% fall in the Total Recordable
Case Frequency to 0.98.
Last year, the Company created 5,700 In-Country Value (ICV) job and training opportunities for Omanis,
meaning more than 10,000 have been generated since His Majesty’s National Objectives Programme was
launched in 2011 to boost employment. The Company also awarded contracts worth more than US$3.1 billion
to locally registered firms, and broadened its support of domestic businesses.
Meanwhile, there was an intensification of PDO’s social investment activity in 2013 with the completion of 13
projects, including the construction of the Ghabah Health Centre, and the signing of eight agreements to invest
around US$9 million on vital community facilities.
Mr Restucci said: “2013 was a banner year for PDO with excellent achievements across the full spectrum of our
operations but we must not take our foot off the gas. We still face significant challenges, such as the
increasingly complex and costly nature of our business, an ageing asset base, local employment imperatives and
the regional gas shortfall. However, these challenges will drive further effort on top quartile ultimate recovery
and EOR, the development of unconventional oil and gas opportunities, continuous business efficiency and a
sustained commitment to ICV.”
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Note to editors:
Petroleum Development Oman (PDO) is the major exploration and production company in the Sultanate. It accounts for about 70% of
the country's crude-oil production and nearly all of its natural-gas supply. The Company is owned by the Government of Oman (which
has a 60% interest), the Shell Group (which has a 34% interest), Total (which has a 4% interest) and Partex (which has a 2% interest).
Gas fields and processing plants are operated by PDO exclusively on behalf of the Government.
For further information please contact the PDO External Affairs Directorate:
Mariam al Maskary, Media Relations Advisor Tel: 2467-5778; E-mail: Maryam.mm.maskari@pdo.co.om