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The following are the oil producing operators in Oman:.

Petroleum Development Oman (PDO). The main concessionaire, PDO produces the bulk of Oman's oil and gas. Its maximum oil production capacity at present is 860,000 b/d and its actual output averages 840,000 b/d. The government restricts PDO's oil production to 6.5% of the company's proven reserves (5.2 bn barrels). PDO is owned 60% by the Omani government, 34% by Shell which is the operator, 4% by Total and 2% by Partex. PDO's production capacity will reach 940,000 b/d before end-1999, when 80,000 b/d of condensates will be added to its crude oil stream.

PDO has more than 110 oil and gas fields. Of these, 89 are oil producers connected to its production system in onshore Oman's main oil fairways: (1) the north, along the border with the UAE and Saudi Arabia, which is an extension of the Arabian Basin, including Thamama-related fields like the Lekhwair-Daleel group; (2) the north-central groups in the Infracambrian Salt Basin, which include the main producing giants like Yibal and fields centred on Fahud-Natih-Shibkah; (3) the central and west-central groups, also in the Salt Basin, which include the now gas-rich Saih Nihaydah; and (4) the south, in a Lower Salt Basin with fields of both very heavy and medium/light oils centred on the Marmul-Nimr-Rima-Jalmud trend.

These fields and other areas yet to be explored now form a single acreage, known as Block No. 6, totalling 113,737 sq km, which PDO will retain. The company has no more relinquishment obligations to make until its concession expires on June 24, 2012 and is limited to oil. Shell and its foreign partners hope the concession will be renewed.

PDO spends heavily on horizontal drilling. All its new wells are horizontal and existing vertical wells are being converted using horizontal side-tracking. These and the use of 3D seismic have resulted in oil and gas discoveries far in excess of expectations made in the 1980s. PDO will have a total of over 1,200 horizontal wells by 2000. (Horizontal wells stretch 500 metres to 1.5 km along a reservoir, giving higher production with less water, and help in the search for or identification of additional hydrocarbon reserves).

PDO functions like a national oil company, although Shell is the operator and PDO is 40% owned by foreign firms. With the concession limited to oil, all the gas being discovered or produced by PDO belongs to the government. PDO operates the gas reservoirs and all the related facilities and pipelines on behalf of the government. Thus, PDO is developing the upstream element of the huge LNG export project on behalf of the oil and gas ministry. Shell is the technical leader of the LNG project and will operate its downstream element when the liquefaction plant goes on stream in 2000. Shell is also the leading offtaker of Oman's crude oils for export (see Part 3).
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Comment:The following are the oil producing operators in Oman:.
Publication:APS Review Oil Market Trends
Geographic Code:7OMAN
Date:Feb 9, 1998
Previous Article:Oman - Part 2 - The Oil & Gas Fields:.
Next Article:The following are brief profiles of PDO's main fields:.

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