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PDO and GlassPoint to build EOR project in Oman

Industry

Petroleum Development Oman (PDO) and GlassPoint have announced that they have plans to establish an enhanced oil recovery (EOR) project in southern part of the country

This plant is expected to be 100 times larger than the Amal project, which was also built by GlassPoint in 2012.

EOR refers to the extraction of crude oil from existing oilfields, which can allow an extractor to remove nearly 60 per cent of a reservoir’s original oil.

Raoul Restucci, MD of PDO, said, ”The main driver will be the opportunity that we can secure in terms of expansion. We will probably be working together with local contractors and suppliers while looking at this opportunity so that solar technology can benefit the whole of Oman beyond the direct impact it will have on the oil and gas industry.”

Solar EOR has numerous advantages as it allows to free up gas to use in other government priorities like power generation, water desalination and industrial projects, added Restucci.

The MD said that he expected a significant windfall from this solar technology — around 11 per cent of PDO’s production will be from EOR in 2014 with the contribution expected to triple by 2023.

Reports also stated that Shell is keen on exploring EOR opportunities in Oman and has already showcased chemical, thermal and miscible gas injection methods at a conference in Muscat.

A report by Ernst and Young added that Oman could become a solar EOR hub in the GCC.

Rod MacGregor, CEO of GlassPoint, said, ”The report found that full-scale deployment of solar EOR by the end of 2023 in Oman could save 1.4mn cubic metres of natural gas per day and generate up to 212,000 jobs. Other GCC nations like Bahrain, Kuwait and Saudi Arabia have already announced solar EOR projects but Oman has an advantage to be a leader in this segment.”

Mark Gregory, chief economist of EY, added that using solar energy for steam production will free valuable gas resources needed to power new industries and diversify the economy. If Oman were to localise the supply chain for solar steam generators, solar EOR could contribute more than US$12bn Omani GDP over the next decade.


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Oman awards 7 MW EOR solar project to GlassPoint

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