PDO to tender Block-6 Khulud Tight Gas First Phase
The largest oil and gas producer, Petroleum Development Oman (PDO) and its main partner Royal Dutch Shell plc (Shell) are preparing to call for tender the first phase of the challenging Khulud Tight Gas project in its Block-6 concession of central Oman.
After BP with Khazzan in the Block-61 and the State wholly-owned Oman Oil Company Exploration and Production (OOCEP) in the Block-60 in the same region, PDO and Shell are targeting to unlock the deep tight gas reserves of the Sultanate of Oman.
In PDO the working interests are shared between:
– Oman Government 60% is the operator
– Shell 34%
– Total 4%
– Partex 2%
Oman is producing heavy crude oil for years but it needs to import natural gas in order to support its economical development with gas-fired power generation and jobs creation through its emerging petrochemical industry.
So in 2009, PDO ran an intensive exploration campaign to explore new deposits in central Oman.
In addition to the exceptional depth of the reservoir, Khulud lies in extreme tightness of rocks formation from where the extraction requires from PDO and Shell the most advanced recovery technologies.
PDO and Shell to run Khulud Tigh Gas Pilot by 2017
The Khulud sour gas temperature ranges around 180 degree centigrade.
Calling for $200 million capital expenditure, this Khulud pilot project should help PDO and Shell to measure the sustainability of the production rates with the selected technologies and to evaluate the commercial viability of a potential Khulud Tight Gas Full Field Development project in a second phase.
– Khulud On-plot package
– Khulud Off-plot package