Tuesday, August 09
11:34 AM

Oman records 3 per cent decline in estimated oil reserves

28 Aug 2021 By GULAM ALI KHAN

Oman’s total estimated reserves of crude oil and condensates decreased by 3 per cent to reach 4.706bn barrels at the end of 2020 in comparison with expected reserves recorded in the previous year, according to the Ministry of Energy and Minerals.

Petroleum Development Oman (PDO), the sultanate’s largest energy producer, contributes for 68.5 per cent of total estimated oil and condensates reserves in Oman, the ministry said in its 2020 annual report released on Thursday.

On the other hand, total reserves of natural gas in Oman are estimated to be 24tn cubic feet at the end of 2020, a slight increase from the previous year’s estimated reserves.

PDO, as per the report, contributes for 55 per cent of the total estimated gas reserves in the country, followed by BP’s Khazzan and Ghazeer fields with 40 per cent contribution. Other companies account for only 5 per cent of the total gas reserves.

As per the ministry’s data, there are total 414 productive fields in the country, of which 342 are oil fields and 72 are gas fields.

By the end of 2020, as many as 19 companies were involved in oil and gas exploration and production operations in Oman’s 37 concession areas. However, there were two relinquishments: Block 40 was relinquished by Petrotel Oman Offshore LLC and Block 66 was relinquished by MOL Oman Ltd.


New exploration

The Ministry of Energy and Minerals said that several exploration and production companies have conducted many seismic surveys in the sultanate that included multiple concession areas. Total area of the 3D seismic surveys exceeded 4,600 sqkm and the 2D seismic surveys area approximately reached 200 sqkm by the end of 2020.

‘80 exploration and appraisal wells – 58 oil wells and 22 gas wells – were drilled and tested in the sultanate’s oil and gas sector last year, which contributed to adding new oil and gas reserves that will ultimately lead to continuous production,’ the ministry said. It added that the petrophysical analysis and productivity tests in some of the wells showed positive results, adding new oil reserves.

The Ministry of Energy and Minerals last year concluded three new production sharing agreements for oil and gas exploration with a number of local and international companies whereby the agreed investment value will be around US$85mn, the report added.


Gas output rises

Oman’s daily average production of natural gas during the year 2020 amounted to 122mn cubic metres per day, 16.5 per cent of which was associated gas at an average of 21mn cubic metres per day.

Non-associated gas, as per the ministry’s report, constituted 79.5 per cent of the total production at an average of 101mn cubic metres per day. In addition, natural gas was imported through Dolphin Energy Company at an average of 5mn cubic metres per day.

As per the ministry’s report, the number of employees working in oil and gas companies operating in Oman during 2020 reached 19,766 – 16,898 Omanis and 2,868 expatriates.

By the end of 2020, Omanisation in the upstream and downstream businesses of the oil and gas sector reached 85 per cent, an increase of 5.7 per cent compared to 2019 level.


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