Petroleum Development Oman (PDO) has reported an increase of 3.2 billion barrels in the company’s STOIIP (stock-tank oil initially in place) volumes in 2007. The figure represents an impressive 88 per cent jump over the corresponding STOIIP increase of 1.7 billion barrels achieved in 2006. STOIIP is the amount of oil believed to be originally contained in a rock formation at stock-tank conditions (under atmospheric pressure and room temperature).

The company attributed the growth in STOIIP volumes largely to the booking of the Habhab heavy-oil reservoir that was appraised during the year, and from the Rabab Southeast and Budour Northeast oil discoveries. Further STOIIP increases resulted from field development plans undertaken by the company’s multi-disciplinary Study Centre and revised petroleum-engineering studies of the Amal, Habur, Ihsan/Mawhoob, Nimr C and other fields.

The higher STOIIP figures are one of many highlights of PDOPDOLoading…’s performance during 2007, detailed in the company’s 2007 Annual Report released here recently. “After several years of intensive effort and hard work by the Company’s staff, I am pleased to report that we are well on the way towards laying a solid foundation for the Sultanate’s long-term oil production,” said PDOPDOLoading… Managing Director John Malcolm in his review of the company’s 2007 performance. “During 2007, PDOPDOLoading… passed several project milestones that will ensure our ability to produce oil and gas for years to come.”

The Study Centre, which is at the heart of PDOPDOLoading…’s efforts to secure the country’s long-term oil output, completed five major field development plans (FDPs) during 2007, covering nearly 68 per cent of PDOPDOLoading…’s stock-tank oil initially in place. A further five new FDPs were initiated in 2007 which, by the end of 2009, will cover over 88 per cent of STOIIP. Several new oil discoveries reported by PDOPDOLoading… during 2007 are also expected to reflect positively on STOIIP volumes growth. Following the discovery in 2006 of a major oilfield at Budour Northeast in south Oman, a second exploration well — known as Budour NE-2 –found significant new oil volumes in another reservoir of the field, said PDOPDOLoading… in its Annual Report.

The other reservoir is located in a formation beneath the one tapped by the original discovery well. When tested, the Budour NE-2 well produced a high quality oil at rates in excess of 5000 barrels of oil per day. Budour Northeast will be the subject of an aggressive appraisal drilling programme in 2008, with several new exploration wells planned to be drilled in the area as well. Furthermore, a new and potentially significant oil discovery was made in Rabab Southeast, also in south Oman. By the end of 2007, the discovery well was being tested, and the results looked promising. Appraisal drilling will be done in 2008 and 2009 to further delineate the discovery, the Annual Report said.

Equally rewarding has been PDOPDOLoading…’s continuing drive to find new gas reserves in 2007. Commercially attractive volumes of natural gas were discovered at the Fahud Southeast field in north Oman. The gas bearing reservoir is located at a depth of around 4,500 metres, approximately 10 kilometres southeast of the Fahud oil field. Initial production testing of the discovery well yielded a stabilised gas flow rate of some 100,000 cubic metres per day.

A significant gas discovery was also made at Simr, located 28 kilometres northwest of the Saih Nihayda gas field. The Simr-1 well found substantial volumes of gas at a depth of five kilometres. Simr is located in the one of the blocks currently being marketed to third parties by the Ministry of Oil and Gas and therefore is likely to be developed by another operator. In another promising development, an exploration well discovered a field extension to the Burhaan West gas field, which is located northeast of Simr. At the end of 2007, the well was being tested with very encouraging results, the Annual Report stated.

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