PDO shareholders approve Harweel project

14 January 2005
Shareholders in Petroleum Development Oman (PDO)have given final investment approval to the first of three major enhanced oil recovery (EOR) projects, Harweel phases 2a and 2b. The investment decision follows the extension in December of PDO's block 6 concession, covering most of the sultanate, to 2044 from 2012 (MEED 24:12:04).

The project, costing an estimated $600 million, entails development of a cluster of fields near Harweel in the south. During phases 2a and 2b, miscible gas injection will be used to boost recovery at the Zalzala field, while conventional methods will be deployed at the Sakhiya and Dafaq fields. Harweel is being rolled out in phases which could see production rise to 100,000 barrels a day (b/d) by 2010.

Technical bids are due by 7 February for the engineering, procurement and construction (EPC) contract on Harweel. The four prospective bidders: are the local Galfar Engineering & Contracting, with Sharjah-based Petrofac International; Italy's Snamprogetti; Canada's SNC Lavalin; and Paris-based Technip (MEED 12:11:04).

PDO's other two EOR schemes awaiting investor approval are for Mukhaizna and Qarn Alam. Technical bids are due by 15 January and commercial bids by 7 February for the front-end engineering and design (FEED) contract on the $1,800 million Mukhaizna thermal injection project, calling for construction of 1,800 wells and 60-80 steam plants to boost production to 60,000-80,000 b/d by 2010. Four US and Canadian companies are understood to have been prequalified for the 12-month contract (MEED 15:10:04).

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