Page 6 - MEOG Week 06 2021

MEOG COMMENTARY MEOG

Petrofac wins more Oman

work amid flurry of activity

Oman’s oil and gas sector has seen a ramp-up in activity over the
past week, with contract awards and progress on a key project.

OMAN OMAN has announced progress on several after 40 years of extended production, given the
fronts over the last week as it continues activity advanced maturity of some of these fields and
in the upstream and downstream sectors. In the their respective developments.”
WHAT: upstream, services contracts were awarded for Petrofac previously carried out a $265mn
Petrofac will carry out enhanced oil recovery (EOR) projects which EPCM contract for the development of the
major engineering work are key to maintaining production levels. Mean- Marmul Polymer Phase 3 (MPP3) project that
at fields in the north while, progress continues to be made at the covered the expansion of off-plot and on-plot
and south, while a local Duqm downstream hub, which Muscat sees production facilities associated with around
firm has been awarded as an important element in its efforts to derive 500 producing and 75 injector wells. The con-
a contract for a major greater value from its upstream output. tract was awarded in 2018, the first under a new
heavy oil asset. UK-based services firm Petrofac has 10-year framework agreement signed last year
extended its long relationship with the sultanate, with the government-led client. PDO – the
WHY: announcing last week that it had been awarded Middle East’s EOR pioneer – commissioned the
Oman is heavily reliant two contracts by Petroleum Development Oman original polymer injection project at the Marmul
on enhanced recovery (PDO) worth a combined $300mn for engineer- field in 2010.
to maintain production ing, procurement and construction (EPC) and The UK contractor has also provided $1.25bn
levels and it continues to delivery work. worth of EPCM support at the nearby Rabab
invest. The first is a 30-month, lump-sum turnkey Harweel Integrated Project (RHIP), output from
(LSTK) contract for work at the Marmul Main which is exported to the Main Oil Line (MOL)
WHAT NEXT: Production Station (MMPS) gas compression via Marmul.
Majan Energy Petroleum project, and the second is a seven-year deal for
is set to carry out studies engineering services and project support for North Oman
on the ultra-heavy concessions in northern Oman. Meanwhile, in northern Oman, Petrofac will
Habhab oilfield. provide “reimbursable engineering services,
Marmul integrated project support and management
At Marmul, in the south of the country, Petrofac services” to PDO’s contract holder Arabian
will carry out EPC, commissioning, start-up and Industries Projects for selected concessions. The
initial operational support work on a new facility contract has an option to extend for three years.
that will eliminate permanent flaring and man- In November, Arabian Industries delivered
age associated gas. The job includes gas recov- 22 multiport selector valve (MSV) skids for
ery and booster compressors, gas sweetening, MPP3 under an ongoing four-year frame agree-
dehydration and other units, utility systems and ment contract with Petrofac for 54 skids, with 15
modification of existing facilities. to be delivered this year and the remainder to
Marmul is part of the Marmul Rahab follow in 2022 as required.
Thuleilat Qaharir cluster of fields at which PDO Meanwhile, in late January it announced the
last year completed drilling of its 1,000th well. In completion of two new storage tanks for PDO at
January 2020, the company noted that produc- Marmul and Lekhwair, with work nearing com-
tion from the cluster was running at 81,600 bar- pletion on a further four tanks at Kauther and
rels per day (bpd) thanks to an extensive drilling SaihNihayda.
programme and the widespread implementa- According to its website, Arabian Industries
tion of EOR techniques. It added that more wells is currently carrying out seven contracts for
would be drilled through the Marmul Polymer PDO throughout Oman.
Phase 3 development and denser waterflood
in-fill projects that will further boost production Habhab award
and add to reserves. Muscat finally announced the signing of an
PDO Oil South director Salim Al Sikaiti said exploration and production sharing agreement
at the time: “The vision is to grow further with (ESPA) for its Block 71 concession, which was
another 1,000 wells in the future. It is great to offerled as a direct negotiation opportunity
see the Marmul cluster sustaining high oil rates alongside the sultanate’s largely unsuccessful

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