Petroleum Development Oman reported signing a $600 million contract to continue developing 18 small and marginal fields in southern Oman.
The deal with MedcoEnergi of Indonesia builds on a 2006 contract and is expected to result in 100 new wells from 2016 through 2021 in the Karim Small Fields (KSF) project.
Current KSF production is 17,500 b/d. PDO said it has hopes of at least 20,000 b/d over the next few years but cited tough challenges such as oil viscosity and high oil-water ratio in the reservoirs (OGJ Online, Feb. 25, 2015).
The contract runs until 2040, with anticipated annual expenditures beyond 2021 of up to $130 million.