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.

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