Oman's PDO confident of 800,000b/d by 2009

MUSCAT - Petroleum Development Oman (PDO), which accounts for more than 90 per cent of the Sultanate's crude production and 40 per cent of its GDP, on Monday said it was confident of returning to output levels of 800,000 barrels a day (b/d) by 2009.

By From Our Correspondent

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Published: Wed 1 Dec 2004, 12:22 PM

Last updated: Thu 2 Apr 2015, 11:46 AM

It also reiterated its commitment to a five-year programme launched in 2003 to cut costs by $2 billion in a bid to keep the average cost per barrel below $10.

Production has been declining after reaching more than 800,000 b/d in the late 1990s because of depletion of some of the company's oil fields, leading to widespread concern among the country's planners and public. Average daily output last year was 702,000 barrels.

"There has been considerable coverage in the media about the drop-off in our oil production in the last few years," John Malcolm, managing director of the company, told a Press conference, adding: "My colleagues and I at PDO as well as the company's shareholders certainly have taken it very seriously."

Malcolm said a series of measures, focusing on better management of fields and recovery techniques, had started showing results, adding that the company was set to finish 2004 slightly above its average annual production target of 650,000 b/d.

Output next year has been forecast at 635,000 b/d. "We will bottom out in terms of production in 2005. But after reaching the bottom, there will come a month in which we produce more than we produced in the month before. And that will be the start of a new long-term trend," Malcolm said.

He said conventional development projects would contribute the bulk of oil production — more than 600,000 b/d — between 2005 and 2009 and the balance would result from new technology.

"By the end of the decade," he said, "we still aim to get back to around 800,000 barrels of oil per day, of which about 20 per cent or so will come from enhanced-oil-recovery (EOR) projects - primarily from the Harweel miscible-gas injection project.



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