OMAN - Oxy Group - Mukhaizna.
This field has a steam injection system similar to the one for Qarn Alam. But the field will have a far more extensive EOR system to be installed by Oxy. Mukhaizna has between 2 bn and 2.4 bn barrels of oil in place. Oxy will try to maximise the recovery rate through to 2011 under a programme in which total investments may exceed $2,000m. The Oxy-led group on Jan. 4 issued a preliminary information notice inviting prequalifiers to bid for the main EPC contract. The invitees have included: Petrofac/Galfar, Dodsal of India, Tecnicas Reunidas of Spain; and Technip of France. A tender was issued on Jan. 11. Bids are to be submitted on March 25.
To be worth $250-350m, the EPC contract covers central production processing units, satellite production processing facilities, an oil tank farm and associated works. The Mukhaizna project calls for use of thermal injection techniques. WorleyParsons MEG of Canada has done the FEED work.
The whole project's scope calls for the drilling of more than 1,800 wells and construction of 80 steam plants. Mukhaizna's crude is so heavy that Oxy will have to mix it with lighter crudes in order for it to flow through pipelines.
In July 2005 when the PSA was approved by a decree issued by Sultan Qaboos, Oxy's CEO Dr. Ray R. Irani was quoted as saying: "We are very pleased to have been chosen to work as partners with Oman to develop this important project. This is another step in the implementation of our growth strategy in one of our core areas. Occidental is an industry leader in increasing and prolonging production from mature and under-developed fields by applying cutting-edge technology and state-of-the-art reservoir management techniques. This is an exciting opportunity to create value for the people of Oman and for our stockholders". (Mukhaizna was discovered in 1975 by PDO. Oxy has been active in Oman since 1979.
A Shell spokesman then said: "Shell has lots of experience in the kind of work required at Mukhaizna and we are still very keen to support the government in developing the field. Everyone portrayed the change of ownership as a bloody nose for Shell, but this is a very large project, which has grown in size, and another way of looking at it would be to see it as a means of sharing the risk".
Liwa's parent, Mubadala Development, is investing heavily in Oman including a stake in a 1m t/y methanol venture in the south. Dolphin Energy Ltd (DEL) has been buying Omani gas and will supply the sultanate with Qatari gas from early 2007. The Abu Dhabi Water and Electricity Authority (ADWEA) is investing in Oman's aluminium smelter.
|Printer friendly Cite/link Email Feedback|
|Publication:||APS Review Gas Market Trends|
|Date:||Feb 6, 2006|
|Previous Article:||OMAN - Natural Gas.|
|Next Article:||OMAN - Oxy/Mitsui - Safah & al-Barakah.|