By Conrad Prabhu — MUSCAT: MAY 6 - A number of big-ticket projects initiated by Petroleum Development Oman (PDO) before the global oil price downturn are still on track and continue to make headway in their implementation, according to the majority government-owned oil and gas producer. The biggest of these is the Rabab Harweel integrated project (RHIP), which has the potential to add more than 500 million barrels of oil equivalent (boe) to reserves.
“(The RHIP) integrates sour miscible gas injection (MGI) in multiple oil reservoirs with production and pressure maintenance of a government gas condensate field, which also contributes to Oman’s overall gas demand,” said PDO in its newly released Sustainability Report for 2016.
The RHIP facility will include sour gas processing facilities and associated gathering and injection systems and export pipelines. It will handle the production of oil and gas from the Harweel oil reservoirs via Miscible Gas Injection and the production of gas with condensate from the Rabab reservoir through partial recycling of sour gas. The facility will deliver peak export of 4.9 MMsm3/d of sweet gas and 9700 m3/d of condensate in addition to approximately 16 MMsm3/d of high pressure sour injection.
UK-headquartered international oil and gas engineering services firm Petrofac is the engineering and procurement contractor for the RHIP development — an estimated $1 billion contract it won early in 2014. The contract also includes Construction and Commissioning management support services with Petrofac providing full support to PDO during the construction and start-up phases of the integrated oil and sour gas facility.
Slated for completion in 2019, construction work on several key components of the project is on schedule, according to PDO. “Power plant pre-commissioning activities have started and plans are ready for commissioning in early 2017. The construction of the RHIP plant is taking shape with the majority of the process equipment, including pre-assembled racks, being delivered and erected at the site. Moreover, most of the associated buildings within the project scope have been completed,” it said.
Significantly, a notable chunk of the project capital cost will be spent within Oman in line with PDO’s strategy to maximise In-Country Value (ICV) from its investments. Local content utilisation, along with training and development of Omanis, will account for a key part of the estimated $230 million in ICV contribution expected from the project during the construction phase. Around 200 Omani 6G-certified Omani welders have been assigned to various RHIP contractors as well, says PDO.
Also making headway is the equally prestigious Yibal Khuff project, billed as one of the largest and technically complex schemes to be undertaken by PDO. The project, which centres on the simultaneous development of a number of sour oil and gas reservoirs, is currently in the construction phase.
“The first oil is projected for 2020, with a peak average production target of 20,000 barrels a day — and a gas plateau of six million cubic metres per day over 18 years,” the company noted in its Sustainability Report.
Also on track for completion for this year is Miraah solar energy project which PDO is implementing in partnership with GlassPoint Solar. The signature project will produce steam for thermal enhanced oil recovery using the sun’s energy to convert water into steam. Steam production is expected to commence this year.
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