Petroleum Development Oman (PDO) has said it will invest US$20 billion over the next five years and continue its focus on Enhanced Oil Recovery (EOR) projects
PDO will embark on a five-year investment programme that will see $4 billion invested each year in number of oil and gas projects, which includes its EOR activity.
Speaking at the OGWA conference in Muscat, PDO managing director Raoul Restucci said, “Oman had entered a new stage of unconventional gas and tight oil exploration.”
Restucci explained that EOR was a very important part of PDO’s operations and that company had become a global leader in EOR processes, having focusing on it much earlier than other NOCs.
Restucci stated that PDO’s portfolio included “three EOR projects – Harweel, Qarn Alam and Marmul already completed and on production”.
“There will be more and more EOR production as we go forward,” he remarked.
Next year PDO will commission the Al Amal steam project, which will produce 20,000 bpd, and Al Khalata as a pilot project in the second half of 2014.
According to Restucci, EOR projects are capable of producing ‘incredible volumes’. The economics remain most attractive and all PDO EOR projects continue to pass stringent investments tests at very low prices to ensure robustness and sustainability.
Oil production from EOR was 3.5 per cent of PDO’s total production in 2011 and should reach 25 per cent by 2012. It will account for 33 per cent of the NOC’s total production by 2025.
“It is a very exciting and challenging time for Oman’s oil and gas scene,” Restucci concluded.
