OMAN - The Other Operators.

There are three oil and condensate producing operators in Oman other than PDO and one gas producer. The following are their field profiles:

Safah & Al Barakah: In Oman's northern fairway, Occidental (Oman) of the US operates the Sunainah block in partnership with Mitsui group of Japan which at end-2001 bought the 35% stake Fortum (ex-Neste) of Finland. The 11,793 sq km block includes three Thamama-related fields yielding 42 deg. API oils: Safah, 40 km north of Lekhwair, now producing 40,600 b/d, compared to 41,000 b/d in early 1998 and 30,000 b/d in 1995; Al Barakah, producing 1,800 b/d compared to 4,700 b/d in early 1996; and Wadi Latham, producing less than 200 b/d from 350 b/d in early 1996.

Safah was found in 1983 in a Lower Cretaceous Fm, at a depth of 6,500 ft, by a JV of Quintana (60%) and Gulf Oil (now ChevronTexaco - 40%). The Sunainah block had been awarded to the JV in Dec. 1975 under an 80-20% PSA. In 1979 Occidental (Oxy) took 15% in this and raised it to 30% in 1981 and 65% in 1983, when it bought Quintana out and became operator. It brought Safah on stream in 1984. In 1989 its capacity was raised from 16,000 to 18,000 b/d. In June 1991 Chevron sold its 35% to Neste and the field's capacity was expanded to more than 24,000 b/d. Further finds boosted its recoverable reserves from 90m to 120m barrels and its capacity reached 34,000 b/d in 1994. Now the field has almost 100 wells, including one with a record medium-radius horizontal section of 4,944 ft. Horizontal wells boosted the field's capacity. Al Barakah, 39 km south-east of Safah, was found in late 1991 and Oxy brought it on stream in 1992. Its capacity has fallen steadily and Oxy has done 3D seismic work in efforts to raise its output. The oil is in an Upper Shuaiba Fm at a depth of 4,686-4,730 ft. The oil is piped to Safah. From there Oxy's whole output is piped to Mina Al Fahal terminal through PDO's facilities at Lekhwair. This includes the oil from Wadi Latham, 32 km west of Al Barakah. Wadi Latham was found in Oct. 1993 through a medium-radius horizontal well and went on stream in late 1994. Its pay zone is 201 ft thick in a Shuaiba Fm at a depth of 6,719-6,920 ft.

Safah also produces natural gas, both gas associated with oil production and non-associated gas. In April 2003 Oxy and Mitsui signed a long-term agreement to sell up to 130 MCF/d to Oman Gas Co. (OGC) from mid-2004. This will help OGC supply the UAE with 135 MCF/d under an agreement with Dolphin Energy, in which Oxy has a stake, until 2007 (see Gas Market Trends No. 7 in next week's Review). When gas production reaches 130 MCF/d, Oxy will raise Safah oil output to 50,000 b/d.

The Daleel fields in a Lower Cretaceous Fm, in a north-central trend on Block 5, are operated by Daleel Petroleum Co. This is a 50-50 JV of Petrogas, a unit of the local field services company MB Petroleum which in late 2001 bought the block's assets from Japex Oman (see background in Vol. 58) and China National Petroleum Co. (CNPC). The fields produce 5,000 b/d of 37-39-44 deg. API (9,000 b/d in early 2000 & 10,000 b/d in early 1998). They are being developed to a capacity of 25,000 b/d by late 2007 and the project involves the drilling of 80 new wells. Daleel, of Lekhwair group found in March 1986, tested 1,000 b/d of 39 deg. API oil at 5,250 ft. It went on stream in mid-1990 at 6,000 b/d. Then Japex developed other small fields it had found and linked them to its system, including the oil/gas producing Mazoon, Bushra and Mazrouq. The concession also has a Sahwa gas field..

Sahmah, found in 1978 by Elf of France, is producing 2,000 b/d of 43-46 deg. API oils, down from 3,000 b/d in early 1998 and 15,000 b/d in 1992. In 1999 Elf sold its 48% share in this 2,250 sq km Butabul Block No. 7 to Petrogas and left Oman. The partners are Sumitomo (32%) and Wintershall (20%). The field has been on stream since Nov. 1980 when it produced 12,000 b/d. Plans to expand it to 20,000 b/d did not materialise because Elf did not find enough reserves. Production has fallen despite EOR work undertaken in recent years.

Bukha, an offshore field shared with Ras Al Khaimah, is operated by Novus Petroleum of Australia. In the Strait of Hormuz, it is producing 3,800 b/d of 50 deg.API condensates (down from 5,500 b/d in early 1996), 950 b/d of LPG (down from 1,200 b/d in early 1998) and about 30 MCF/d of residual gas (down from 40 MCF/day in early 1998). The output is pumped to Ras Al Khaimah's onshore gas processing plant at Khor Khwair through a 35-km, 16-inch marine pipeline. The LPG is sent by trucks to a Ras Al Khaimah-based firm under a sales deal signed on Sept. 21, 1999. The field's residual gas is given to Ras Al Khaimah in return for use of its facilities.

Novus in 1997 bought the 30% stake of International Petroleum Corp. of Canada which was the operator. This raised Novus' stake to 40%. The other partners are LG Group of S. Korea (25%), Sinochem's Atlantis Holding Norway (25%) and Eagle Energy Oman of Heritage Oil & Gas of the UK (10%).

Bukha is connected to the large Henjam gas field on the Iranian side of territorial waters by Oman's West Bukha and both are to be exploited jointly by the two states.

Bukha, 15 km north of Musandam, went on stream in April 1994. Its recoverable reserves were then estimated at 8.5m barrels of condensates and 157 BCF of gas in Thamama and Mauddud Fms at 9,965-11,695 ft, under more than 290 ft of water.

In Jan. 2003 Novus announced the Tibat find on Block 17 held by the same partners. This later tested 10-12 MCF/d of gas with condensate of up to 75 barrels per MCF. A second test of a lower zone flowed at 1,800 b/d of liquids and 1.7 MCF/d of gas.

Gulfstream Resources of Canada began gas production in 2000 from the Haffar, Al Sahwa and Nadir fields on Block 30 which it got in July 1997 under a gas PSA. The production stream, 85 MCF/d, is tied to national grid through a 16 km, 16-inch pipeline and sold to OGC under a contract signed in late 1999. Its system consists of ten wells and its capacity may rise. Its proven reserve is put at 171 BCF.

Block 40, 12,000 sq km onshore on the Musandam peninsula, contains up to 1.5 TCF of gas in place and will become a producer by 2006. Electro Silica in Aug. 2003 bought 50% in this from Atlantis Holding Norway (now a unit of Sinochem of China). Drilling began in September 2003. Atlantis estimates it can recover 150-200 BCF.