Omans largest oil and gas producer has raised its target plateau for crude production to 600,000 barrels a day (b/d) after a strong recovery in output in recent years.
Petroleum Development Oman (PDO) produced 1.29 million barrels of oil equivalent a day (boe/d) of oil and gas in 2015, including 588,900 b/d of crude oil the highest since 2005 and 82,900 b/d of condensate, managing director Raoul Restucci told reporters in Muscat on 20 March.
[We are looking to] sustain a plateau of 600,000 b/d in excess of the next ten years, said Restucci, referencing the countrys crude oil production target. The company was producing over 600,000 b/d in January and February this year.
Restucci said that PDO has reduced its planned expenditure for 2016 by $1.6bn but continue to invest in strategic projects.
The companys non-associated gas production for 2015 was 1 million cubic metres a day (cm/d) above target at 83 million cm/d.
PDOs exploration arm booked nearly 109 million barrels of oil and 0.38 trillion cubic feet of gas as commercial contingent resources (CCRs). The most significant oil discovery was Sadad North, which opened up a new play below an existing field close to a production facility, PDO said.
During 2015, PDO brought on stream the Saih Rawl depletion compression phase two project and phase two of the Marmul polymer enhanced oil recovery (EOR) scheme.
PDO also made final investment decision ion the Yibal rejuvenation and Lekhwair Upper Shuaiba projects with construction contracts set to be awarded in 2016.
The company said the final investment decision was also approved on phase three of the Mabrouk Deep gas project, with phase two set to be completed this year.
In last years annual press conference PDO revealed it has shelved the development of the Habhab heavy oil field.
Habhab is one of the high cost EOR projects and at $30-40 a barrel it would simply not fly, said Restucci, saying that the project is technically complex.
Habhab will take quite some time to develop we are inviting additional players to take a significant chunk of the field. It was never featuring in our medium term plans, Restucci added.
Restucci said the development of the Budour field is still on hold due to the discovery of the Tayseer field, which will be prioritised.
We will build early development facility at Tayseer and then build the expansion, said the managing director.