Business | Oil & Gas
Petrogas wins deal to operate small oilfields in south Oman
Oman's first fully home-grown oil exploration firm, Petrogas, led a field of nearly 200 local and international bidders to win a contract to operate a cluster of small oilfields in south Oman.
- Staff Report
- Published: 20:26 June 15, 2008
Muscat: Oman's first fully home-grown oil exploration firm, Petrogas, led a field of nearly 200 local and international bidders to win a contract to operate a cluster of small oilfields in south Oman.
The contract for the Rima cluster - a collection of 18 small fields - was awarded by Petroleum Development Oman (PDO), which is majority owned by the government. Petrogas, which is a subsidiary of the privately owned MB Petroleum, will operate the cluster jointly with Oman Oil Company (OOC), the energy investment arm of the Omani government.
"I am very happy to see that two Omani companies have won this important contract to develop the Rima fields," said Dr Mohammad Bin Hamed Al Rumhy, the Omani Minister of Oil and Gas.
"The contract was awarded on the basis of a highly competitive open tender in which more than 200 companies from both Oman and abroad participated."
Resources
PDO, which produces nearly 80 per cent of Oman's crude oil and almost all of its natural gas output, is focusing its resources primarily on large fields within its sprawling Block 6 concession. With many of its productive fields maturing, the company is turning to resource-intensive Enhanced Oil Recovery (EOR) techniques to reverse a decline in oil output. At the same time, it is also partnering with oilfield service providers to develop and operate its smaller producing assets.
PDO's managing director, John Malcolm, hailed the Rima Small-Fields Service Contract as an effective way to increase production from the cluster of fields.
"The 15-year service contract is aimed at raising - in a quick and cost-effective way - the production levels of these fields, which contain more than 500 million barrels of oil in the ground and are currently producing about 2,000 barrels of oil per day," he said.
"The contract will allow PDO to dedicate its resources to the development of larger fields, which currently account for the vast majority of its oil production, and to the execution of its complex enhanced-oil recovery projects," he said.
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