Novel tech to unlock ultra-heavy oil reservoir

MUSCAT, JAN 6

Two US-based, energy-linked firms have announced that they have been selected by the Omani government to assess the viability of deploying advanced electric heating technology to unlock the hydrocarbon potential of Block 71, home to the ultra-heavy oil Habhab reservoir in southern Oman.

Westlawn Middle East, the regional arm of Houston-based private investment firm Westlawn Group, said it is partnering with energy technology company Salamander Solutions, also headquartered in Houston, to evaluate the application of electric heating technology for producing oil from the block’s bitumen-like crude.

According to press statements issued by the two companies, an agreement signed with Oman’s Ministry of Energy and Minerals grants them the right to drill appraisal wells in Block 71 to assess the technical and commercial merits of applying what they describe as a proprietary and innovative technology to one of the Sultanate of Oman’s most challenging yet high-potential reservoirs.

First identified in 1982, the Habhab field has long resisted commercial development, with repeated efforts to bring its hydrocarbons to surface proving unsuccessful. Petroleum Development Oman (PDO), the Sultanate of Oman’s largest hydrocarbons producer and the former licence holder under Block 6, previously piloted a range of steam and chemical injection techniques to unlock the reservoir’s potential. While these trials delivered encouraging results, they ultimately lacked the certainty required for PDO to justify the significant capital investment needed for a standalone development.

Habhab nonetheless represents a sizeable opportunity for an upstream firm backed by the right technology. The field is estimated to contain approximately 2.4 billion barrels of ultra-heavy crude oil (stocktank oil initially in place, STOIIP). The hydrocarbons are hosted in a thinly laminated sandstone reservoir with an oil column of around 100 metres, encountered at depths starting near 1,550 metres. However, the crude’s ultra-heavy nature presents formidable production challenges. With surface viscosity estimated at more than 1.5 million centipoise, the oil is roughly 1.5 million times more viscous than water at ambient temperature.

The companies said that technical and commercial success at the conclusion of the feasibility study could pave the way for a long-term concession agreement with the Omani government.

“This is our first transaction in Oman since establishing our in-country presence in 2024 and we are delighted to partner with the Ministry of Energy and Minerals and Salamander Solutions. We look forward to unlocking significant value for the country”, said Chadi Letayf, Executive Vice President of Westlawn.

Hatem Haidar, CEO of Salamander Solutions, added: “This agreement marks a significant milestone in deploying our proprietary electric heating technology in the Middle East. We are excited to partner with the Ministry of Energy and Minerals and Westlawn to demonstrate its value in unlocking complex reservoirs”.

Salamander said its heater cable technology is designed to extend beyond the reach of conventional thermal methods, delivering up to 3 MW of power over a continuous heated length of up to three kilometres when installed in wells. The cables are engineered to operate under harsh downhole conditions at full power and maximum temperature for more than a decade.

For Westlawn, the agreement marks its debut in Oman’s upstream energy sector. Founded in 2021, the firm invests in operated and non-operated producing, development and exploration assets, as well as technologies aimed at enhancing hydrocarbon recovery. Its investment footprint spans the United States, Latin America, the Caribbean and the Middle East.