PDO seeks investment in heavy-oil project

Petroleum Development Oman has invited oil and gas companies to invest in what it calls a “sourcing exercise” targeting development of heavy oil in Oman’s Habhab region.

The company, 60% owned by the sultanate, is seeking bids for participation under a service contract providing for cost recovery and profit-sharing from sales of diluted bitumen.

It estimates the target area holds 1 billion stock-tank bbl of 10-14° gravity bitumen in place. Viscosity is 30,000-100,000 cp at 65°C. reservoir temperature and 1 million cp at surface.

The project seeks “development and implementation of hydrocarbon production practices aimed at achieving the maximum economic recovery of Habhab oil,” PDO says.

The bitumen accumulation is in a thinly laminated sandstone with an oil column thickness of 100 m encountered at depths starting at 1,550 m. The sandstone has permeability of 1-100 md and porosity of 20-25%. Initial oil saturation is about 50%.

Offering documents identify the target sandstone as Cambrian Miqrat and indicate development might be approved of the shallower Al Khalata and deeper Gariff formations.

PDO describes the contract area as “remote with no facilities existing.” The agreement term is 27 years.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...

Shell Leverages Data to Transform from Reactive to Predictive Operations

This 6-page report describes how Shell engaged in a massive project with OSIsoft to transform the...

Selection, Use, Care and Maintenance of FR Clothing

For industries operating in an inherently dangerous environment, the importance of selecting the ...

Evolution or Revolution: IT / OT convergence means a world of possibilities

The oil and gas industry is experiencing a rapid paradigm shift in regards to digital transformat...