Oman’s PDO sets 2024 crude target of 700,000 b/d

      Published on Friday, 5 June , 2020      926 Views     
Oman’s PDO sets 2024 crude target of 700,000 b/d

  • Business

The company has set the new target after its crude output rose for the second consecutive year in 2019 to reach the highest level since 2005, buoyed by the completion of its largest enhanced oil recovery (EOR) project at Rabab Harweel.

PDO’s crude production was 616,000 b/d last year, up by 6,000 b/d from 2018. The Rabab Harweel project, which was completed in 2018 two months ahead of schedule and around $1bn under budget, will deliver 76,000 b/d of crude once it reaches plateau.

PDO‘s condensate output also hit a multi-year high in 2019, rising by 44pc year-on-year to 94,000 b/d. But gas production edged down to 62.2mn m³/d (2.19bn ft³/d) from 64.8mn m³/d in 2018.

Overall crude, gas and condensate production was 1.21mn b/d of oil equivalent (boe/d) last year, compared with 1.2mn boe/d in 2018.

PDO is comfortably Oman’s biggest hydrocarbons producer. It accounted for 73pc of Oman’s total liquids output in 2019, up from 69pc in 2018. The company also added 35mn bl of crude and 1.1 trillion ft³ of gas to its reserves through exploration activities last year, while keeping exploration costs at approximately $1/bl.

The firm expects another key EOR project to contribute to its 2024 crude output target. The Yibal Khuff project is set to come on stream in February 2021, although it was initially scheduled to be finished in 2019. Yibal Khuff will deliver 5mn m³/d of gas and around 10,000 b/d of crude.

PDO has said previously that it expects 25pc of its production to come from EOR projects by 2025, but with oil prices down by more than a third since the start of the year, this plan could change.

The Omani state owns 60pc of PDO, Shell holds 34pc, Total has 4pc and Portugal’s Partex owns the remaining 2pc. Oil and gas sales form the bulk of Oman’s income and accounted for more than 70pc of government revenue in 2019.

Category Business, Oman News | 2020/06/05 latest update at 1:00 PM
Source : Argus Media | Photocredit : Google
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