CAPITAL: MUSCAT
MONETARY UNIT: OMANI RIYAL
REFINING CAPACITY: 85,000 B/D
OIL PRODUCTION: 891,200 B/D
OIL RESERVES: 5.5 BILLION BBL
GAS RESERVES: 29.28 TCF

Oman LNG LLC, Oman, said that its second natural gas liquefaction train was completed. The first LNG cargo was sent to South Korea in April 2000.

The company said Oman LNG would be building to its full production capacity of 6.6 million tonnes/year.

The plant began producing LNG from the first of the two process trains in early 2000. Chiyoda Foster Wheeler, the plant's main contractor, handed over the plant in late 2000.

Shipments were due to go to Oman LNG's largest customer, Korea Gas Corp. Other long-term buyers were Osaka Gas Co. Ltd., Japan, and Dabhol Power Co., India.

Oman LNG was a joint venture of Oman 51%, Royal Dutch/Shell Group 30%, TotalFinaElf SA 5.54%, Korea LNG 5%, Mitsubishi Corp. 2.77%, Mitsui & Co. 2.77%, Partex 2%, and Itochu Corp. 0.92%.

Upstream

Oman Berkley Petroleum Corp., Calgary, joined a Phillips Petroleum Co. group that planned to explore 4.2-million-acre Block 38 and 4.6-million-acre Block 36 in southwestern Oman.

Berkley said the scope of leads and prospects identified could mean reserves of 3-4 billion bbl in the two areas. It had access to 10,000 km of seismic data, and more than 20 undrilled prospects were identified. A well was planned on Block 36.

Interests were Phillips 50%, and Maersk Oil Oman of Denmark and Berkley 25% each.

Berkley planned to spend $15 million (Can.) in Oman in 2000 and 2001, its first venture outside North America.

Gulfstream Resources Canada Ltd., Calgary, signed a gas sales agreement with Oman's Ministry of Oil and Gas to develop Hafar Block 30 onshore.

The company said the project was the first gas development in Oman by a concession holder based on an exploration and production-sharing agreement.

The development plan covered production from Hafar, Al Sahwa, and Nadir gas fields and included gathering systems, a central processing facility, and a 16 km tie-in to the government gas system. Total development cost was $37 million.

Under the agreement, the contract quantity was 84 MMcfd/year, with provision for excess amounts, the company reported. Gulfstream had a 100% working interest.

Gulfstream said all major facilities contracts had been tendered and evaluated. The project was due to begin operations in mid-2001.