Oxy to supply gas from Safah field

11 November 2002

Occidental Petroleum Corporationof the US is due to sign in mid-November a heads of agreement with the Oil & Gas Ministry to supply gas from its Safah field in Block 9. Pending government approval, the deal will activate the $100 million development of gas production facilities in Block 9, which already produces between 32,000-42,000 barrels a day (b/d) of oil. The field is estimated to have enough reserves to produce about 120 million cubic feet a day (cf/d) of gas for the next five years (MEED 23:8:02).

Australia's Worleyhas worked on conceptual and front-end engineering and design (FEED) studies for the project, which entails: drilling additional wells; construction of gas processing facilities with capacity to handle between 120 million-150 million cf/d of gas; and construction of a pipeline to tie into the main Sohar-Fahud gas line. Japan's Mitsui & Companyis Occidental's partner in Block 9, with a 40 per cent stake in the concession.

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