Oman to complete five gas wells by end of next year

Petroleum Development Oman (PDO) will complete five major gas wells by the end of next year to enhance its gas production.

John Malcolm, managing director, said that the five wells are located in Al Huwaisah, Faal, Burhaan West, Budour and Wafi.

It has started drilling in Al Huwaisah and hopes to get some early estimates of reserves soon. Out of the five, the first three target prospects in the Haima rock formation of north Oman, while the last two target carbonate-stringer prospects in southern Oman.

"The gas production rates of these wells are anyone's guess. They will only become clearer after well tests have been conducted. And if we are fortunate enough to discover a new gas field through one of these five wells, then its reserves will depend on the results of subsequent appraisal of wells, which will take some more time to drill and test," said Malcolm.

As oil production in Oman is dwindling by more than 10 per cent per annum, gas has become a significantly growing component in PDO's portfolio. It supplies 38 million cubic metres of gas per day to domestic customers.

Once commercial gas production starts, these five wells could add significantly to PDO's gas reserves.

About 30 per cent of the hydrocarbon energy that PDO supplies comes from natural gas, the fuel that has a central role in the government's economic diversification plans.

PDO has been supplying gas to power and desalination plants in Oman, which are some of its oldest customers. Apart from these customers, PDO also supplies gas to processing trains of Oman Liquefied Natural Gas.

Intense exploration has raised proven natural gas reserves from 12.3 trillion cubic feet in 1992 to just under 30 trillion this year. This figure could increase by as much as two tcf when the gas in the Dakhiliya field is accounted for.

Oman has a huge quantity of gas associated with oil and even that which is non-associated is often located close to the country's oilfields.

According to an estimate, more than 10 trillion cubic feet of Oman's non-associated natural gas is located in deep geological structures, many of which are beneath active oilfields.