Page 11 - MEOG Week 22 2022

MEOG PROJECTS & COMPANIES MEOG

BP extends Abraj rig contract in Oman

OMAN BP announced this week that it has extended a state-backed Petroleum Development Oman
contract to local firm Abraj Energy Services for (PDO) covering hydraulic fracturing work on
land rig services in its Block 61 concession in low-pressure wells, 10 months after PDO had
Oman. handed out $4bn worth of maintenance con-
The contract was originally awarded by BP tracts to fellow local firms Arabian Industries
Oman in 2014 with a value of $330mn and cov- Projects and Special Technical Services (STS)
ered three drilling rigs for the full field devel- for work on the 900,000-square km Block 6 con-
opment of the Khazzan gas field. The latest cession, which has a total production capacity of
extension is for another two years. around 650,000 barrels per day. Block 6 is esti-
BP has developed the 3,700-square km Block mated to hold more than 75% of the Sultanate’s
61 in two stages – Khazzan came into production remaining oil reserves.
in 2017 and produces 28mn cubic metres per day Meanwhile, in July 2021, OQ was reported
of gas; Ghazeer came on stream in 2020, adding to be considering the sale of its Abraj Energy
another 14 mcm per day. Services drilling unit as part of broader divest-
According to a joint statement, Abraj and BP ment plans. Sources said that plans were in
completed the first well stimulation in the con- their infancy, with one source saying that OQ
cession in December 2021. may decide to carry out only a partial divest-
Abraj, which was established in 2006, owns 19 ment by floating the company on the local stock
land rigs and is the drilling unit of Oman’s state exchange.
oil firm OQ, formerly Oman Oil Co. (OOC). The partial or complete sale of Abraj has been
In March, a contract was renewed with the mooted by Muscat since 2015 and has been
local arm of Indonesia’s Medco Energi for Abraj repeatedly postponed pending an upturn in the
for the supply of the 1,000-horsepower Abraj 105 upstream oil industry. The firm was created in
drilling rig for operations in the Karim field for a 2006 and owns 13 land rigs.
further two years. The company has provided rig Abraj’s clients have included CC Energy
services to Medco since 2010, with the original Development, Naftogaz Middle East, Occidental
Abraj 102 rig replaced with the newer model in Petroleum, Oilex, Oman Oil Co. Exploration &
2017. Production (OOCEP), Petrogas Rima, Petronas
In February, it won a contract from and PetroTel.™

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