Page 8 - DMEA Week 06 2021
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DMEA                                          COMMENTARY                                               DMEA




       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   PDO Oil South director Salim Al Sikaiti said
                         fronts over the last week as it continues activ-  at the time: “The vision is to grow further with
       WHAT:             ity in the upstream and downstream sectors.  another 1,000 wells in the future. It is great to
       Petrofac will carry out   In the upstream, services contracts were  see the Marmul cluster sustaining high oil rates
       major engineering work   awarded for enhanced oil recovery (EOR)  after 40 years of extended production, given the
       at fields in the north   projects which are key to maintaining pro-  advanced maturity of some of these fields and
       and south, while a local   duction levels. Meanwhile, progress contin-  their respective developments.”
       firm has been awarded   ues to be made at the Duqm downstream hub,   Petrofac previously carried out a $265mn
       a contract for a major   which Muscat sees as an important element  EPCM contract for the development of the
       heavy oil asset.  in its efforts to derive greater value from its  Marmul Polymer Phase 3 (MPP3) project that
                         upstream output.                     covered the expansion of off-plot and on-plot
       WHY:                UK-based services firm Petrofac has  production facilities associated with around
       Oman is heavily reliant   extended its long relationship with the sultanate,  500 producing and 75 injector wells. The con-
       on enhanced recovery   announcing last week that it had been awarded  tract was awarded in 2018, the first under a new
       to maintain production   two contracts by Petroleum Development Oman  10-year framework agreement signed last year
       levels and it continues to   (PDO) worth a combined $300mn for engineer-  with the government-led client. PDO – the
       invest.           ing, procurement and construction (EPC) and  Middle East’s EOR pioneer – commissioned the
                         delivery work.                       original polymer injection project at the Marmul
       WHAT NEXT:          The first is a 30-month, lump-sum turnkey  field in 2010.
       Majan Energy Petroleum   (LSTK) contract for work at the Marmul Main   The UK contractor has also provided $1.25bn
       is set to carry out studies   Production Station (MMPS) gas compression  worth of EPCM support at the nearby Rabab
       on the ultra-heavy   project, and the second is a seven-year deal for  Harweel Integrated Project (RHIP), output from
       Habhab oilfield.  engineering services and project support for  which is exported to the Main Oil Line (MOL)
                         concessions in northern Oman.        via Marmul.

                         Marmul                               North Oman
                         At Marmul, in the south of the country, Pet-  Meanwhile, in northern Oman, Petrofac will
                         rofac will carry out EPC, commissioning,  provide “reimbursable engineering services,
                         start-up and initial operational support work  integrated project support and management
                         on a new facility that will eliminate permanent  services” to PDO’s contract holder Arabian
                         flaring and manage associated gas. The job  Industries Projects for selected concessions.
                         includes gas recovery and booster compres-  The contract has an option to extend for three
                         sors, gas sweetening, dehydration and other  years.
                         units, utility systems and modification of exist-  In November, Arabian Industries delivered
                         ing facilities.                      22 multiport selector valve (MSV) skids for
                           Marmul is part of the Marmul Rahab  MPP3 under an ongoing four-year frame agree-
                         Thuleilat Qaharir cluster of fields at which PDO  ment contract with Petrofac for 54 skids, with 15
                         last year completed drilling of its 1,000th well. In  to be delivered this year and the remainder to
                         January 2020, the company noted that produc-  follow in 2022 as required.
                         tion from the cluster was running at 81,600 bar-  Meanwhile, in late January it announced the
                         rels per day (bpd) thanks to an extensive drilling  completion of two new storage tanks for PDO at
                         programme and the widespread implementa-  Marmul and Lekhwair, with work nearing com-
                         tion of EOR techniques. It added that more wells  pletion on a further four tanks at Kauther and
                         would be drilled through the Marmul Polymer  SaihNihayda.
                         Phase 3 development and denser waterflood   According to its website, Arabian Industries
                         in-fill projects that will further boost production  is currently carrying out seven contracts for
                         and add to reserves.                 PDO throughout Oman.



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