“This performance was achieved despite difficult operating conditions, notably an overheated contracting market that led to delays in obtaining resources both in terms of manpower and equipment,” Managing Director, John Malcolm said. Among the notable highlights of the year was a vital increase in the production of condensate, a valuable hydrocarbon produced along with gas. In 2008 condensate output grew from 46,000 bpd to 77,000 bpd, an increase of more than 50%. The increase was largely attributable to higher yields from the Kauther gas plant, which came on stream in late 2007.
Three new oil fields, either found or appraised during 2008, were operational thereby contributing to Petroleum Development Oman’s 2008 oil production. While two of the fields comprising of Taliah and Malaan West, are part of the Lekhwair cluster in northwest Oman, the third oilfield, Rabab Southeast, although found earlier, was proven to be commercially developable in well tests conducted in 2008. First oil production from the Rabab Southeast field is estimated in 2009.
In other successes reported during 2008, Petroleum Development Oman was also able to improve its evaluations of the hydrocarbon potential of the Burhaan West and Fahud Southwest gas fields, as well as in the Budour Northeast oilfield. In addition, a well drilled to a depth of about 5,000 meters at Khulud, southwest of the Fahud field, has yielded evidence of gas in at least two high-pressure, high-temperature reservoirs. Considerably, this was the first gas exploration well in Oman that was drilled using the under-balanced technique, which allows for gas to flow into the well as it is being drilled.
