Drilling begins on three new exploration wells in Block 55

Hydrocarbon quest: Schlumberger wins $20m integrated drilling services contract –

Conrad Prabhu –
MUSCAT, JULY 23 –
Global oil services giant Schlumberger has revealed that it has been awarded a contract by Oman-based Petrogas Kahil for the drilling of three exploration wells in Block 55 in the south east of the Sultanate.
The one-year integrated drilling services contract is valued at around $20 million, Schlumberger stated in its latest quarterly earnings report. As part of the contract, Schlumberger will also deploy a range of its proprietary drilling technologies, including vertical drilling rotary steerable systems, modular compact wellhead systems and ridged diamond element bits, it said.
Petrogas Kahil LLC, a wholly owned subsidiary of Petrogas Exploration & Production LLC, acquired the onshore 7,564 sq km ‘Kahil Block’ in 2014 under an Exploration & Production Sharing Agreement (EPSA) with the Omani government. Besides holding a 100 per cent interest in the Block, Petrogas Kahil is also the operator of the concession.
Operations linked to the drilling of the first of the three exploration wells, part of Petrogas Kahil’s commitments under the EPSA pact, have already commenced. In all, four exploration wells have been pledged under the first four-year phase of its obligations.
Since the acquisition of the licence, Petrogas has undertaken a comprehensive work programme, including the reprocessing of legacy 2D data and the acquisition of modern 3D seismic to evaluate prospective areas identified from gravity and magnetic surveys.
“The block is now covered with some 4,180 km of 2D and 130 km2 of 3D data. This new seismic coverage, along with well control provided by historic drilling has enabled new prospects and leads to be developed,” says Petrogas Kahil.
The ongoing exploration programme, according to the operator, is focused on both the Eastern Flank and Tertiary Basin structural targets. The first well will target a mapped fault bounded dip-closure in the Tertiary with stacked reservoir objectives and an aggregate unrisked STOIIP (stock tank oil initially in place) significantly in excess of 100 million barrels.
In the event of a firm discovery of hydrocarbons, options are in place for the appraisal, development and monetization of the resources, says Petrogas. Nearby infrastructure provides ready access to export facilities, notably in the form of PDO’s main pipeline and the Rima Small Fields facilities operated by a Petrogas E&P subsidiary. Block 55 is also located not far from the Mukhaizna field facilities, and the future Crude Oil Storage Terminal at Ras Markaz.
Parent group Petrogas E&P is an Oman-based private E&P company with net production in excess of 40,000 barrels of oil per day and 2P reserves (proved and probable) greater than 100 million barrels. The company also has interests in exploration and production assets in the Middle East, Africa and Europe.