Opportunity Oman: Unlocking the potential of Enhanced Oil Recovery
Published: 06:05 PM,May 11,2024 | EDITED : 10:05 PM,May 11,2024
Oman's oil and gas energy sector has been the backbone of its economy for decades, with major Exploration & Production (E&P) players like Petroleum Development Oman (PDO) leading the portfolio. However, as the country's oil fields mature, the Sultanate of Oman is turning to Enhanced Oil Recovery (EOR) techniques to maximize the potential of its existing reserves and ensure a sustainable future for Oman.
Pioneer in EOR Adoption: Oman has emerged as a global leader in implementing EOR technologies, with companies like PDO actively utilizing thermal, chemical, and miscible flood methods to enhance production from mature fields. This proactive approach serves as a valuable case study for other oil & gas E&P companies/ nations facing similar challenges.
Oman's achievements in EOR are noteworthy:
- PDO has successfully implemented steamflooding in the Amal field using renewable energy, enhancing oil production by 16,000 barrels per day (bpd) and achieving a 30% recovery rate.
- The Marmul Polymer project, operated by PDO, is one of the world's largest polymer flood projects, targeting an incremental recovery of around 76 million barrels of oil.
- The Harweel 2AB project, which uses miscible gas injection, has increased oil production by 23,000 bpd and is expected to yield an additional 40 million barrels of oil.
The widespread utilization of EOR techniques in Oman's oil and gas energy sector has the potential to create significant value for the country's economy. By enhancing oil production, EOR can generate additional revenue for the government, stimulate job creation, and foster economic diversification. Moreover, the development of a robust EOR industry in Oman can attract further investment in the sector and drive technological opportunities and advancements.
Opportunities for investors and local businesses:
Oman's focus on EOR presents exciting opportunities for various stakeholders. Foreign investors with expertise in EOR technologies can collaborate with Omani firms through joint ventures or partnerships, facilitating knowledge and technology transfer. Domestic investors can also capitalize on this trend by acquiring EOR expertise and becoming key players in the local and regional EOR landscape.
Local companies, including small and medium-sized enterprises (SMEs), stand to benefit from the growth of the EOR industry in Oman. By providing goods and services related to EOR implementation, such as equipment supply, logistics, maintenance and research and development (R&D) services, these businesses can play a crucial role in the EOR value chain and contribute to the country's economic growth.
Navigating challenges and the role of stakeholders:
Implementing EOR techniques in Oman's oil fields still has its own challenges. The technical complexity of EOR projects requires significant expertise and experience, which can be addressed through collaboration with international partners. As the country driving for net zero milestone by 2050, there is huge opportunity for sustainable new technologies. Additionally, finding the right economic balance is crucial for project success, as EOR initiatives can be capital-intensive.
To overcome these challenges and foster a supportive ecosystem for EOR in Oman, all stakeholders must work together. The Ministry of Energy and Minerals (MEM), under the leadership of Eng. Salim bin Nasser al Aufi, plays a pivotal role in creating an investment-friendly environment that attracts international expertise as well as encourages the participation of Omani companies.
PDO's recent appointment of Dr Aflah al Hadhrami as its first Omani national Managing Director is a testament to the country's commitment to develop local talent and expertise in the energy sector. With his extensive experience working with multinational companies and his involvement in shaping Oman's Vision 2040, Dr Al Hadhrami is rightly positioned to drive the EOR agenda forward and take the sector to new apex.
Sustainable future for Oman's oil and gas industry:
As Oman continues to embrace EOR techniques and journey to net zero, the country is not only securing its own energy future but also setting a global example for responsible and sustainable oil production. By coupling EOR with Carbon Capture, Utilization, and Storage (CCUS) technologies, Oman can pave the way for a more clean and sustainable approach to oil production.
The success of Oman's EOR journey will serve as a model for sustainable energy production and economic diversification in the region and beyond. With the right investments, policies, and collaborations, Oman can become a hub for EOR expertise, attracting investment and fostering a more prosperous and sustainable future for all its people.
In conclusion, Enhanced Oil Recovery represents a significant opportunity for Oman to unlock the full potential of its oil reserves, drive economic growth, and secure its energy future. By embracing this technology and fostering a supportive ecosystem, Oman is positioning itself as a leader in sustainable energy production and setting the path for a brighter, more resilient future.
Dr Yousuf Hamed al Balushi
yousufh@omaninvestgateway.com
www.omaninvestgateway.com
Pioneer in EOR Adoption: Oman has emerged as a global leader in implementing EOR technologies, with companies like PDO actively utilizing thermal, chemical, and miscible flood methods to enhance production from mature fields. This proactive approach serves as a valuable case study for other oil & gas E&P companies/ nations facing similar challenges.
Oman's achievements in EOR are noteworthy:
- PDO has successfully implemented steamflooding in the Amal field using renewable energy, enhancing oil production by 16,000 barrels per day (bpd) and achieving a 30% recovery rate.
- The Marmul Polymer project, operated by PDO, is one of the world's largest polymer flood projects, targeting an incremental recovery of around 76 million barrels of oil.
- The Harweel 2AB project, which uses miscible gas injection, has increased oil production by 23,000 bpd and is expected to yield an additional 40 million barrels of oil.
The widespread utilization of EOR techniques in Oman's oil and gas energy sector has the potential to create significant value for the country's economy. By enhancing oil production, EOR can generate additional revenue for the government, stimulate job creation, and foster economic diversification. Moreover, the development of a robust EOR industry in Oman can attract further investment in the sector and drive technological opportunities and advancements.
Opportunities for investors and local businesses:
Oman's focus on EOR presents exciting opportunities for various stakeholders. Foreign investors with expertise in EOR technologies can collaborate with Omani firms through joint ventures or partnerships, facilitating knowledge and technology transfer. Domestic investors can also capitalize on this trend by acquiring EOR expertise and becoming key players in the local and regional EOR landscape.
Local companies, including small and medium-sized enterprises (SMEs), stand to benefit from the growth of the EOR industry in Oman. By providing goods and services related to EOR implementation, such as equipment supply, logistics, maintenance and research and development (R&D) services, these businesses can play a crucial role in the EOR value chain and contribute to the country's economic growth.
Navigating challenges and the role of stakeholders:
Implementing EOR techniques in Oman's oil fields still has its own challenges. The technical complexity of EOR projects requires significant expertise and experience, which can be addressed through collaboration with international partners. As the country driving for net zero milestone by 2050, there is huge opportunity for sustainable new technologies. Additionally, finding the right economic balance is crucial for project success, as EOR initiatives can be capital-intensive.
To overcome these challenges and foster a supportive ecosystem for EOR in Oman, all stakeholders must work together. The Ministry of Energy and Minerals (MEM), under the leadership of Eng. Salim bin Nasser al Aufi, plays a pivotal role in creating an investment-friendly environment that attracts international expertise as well as encourages the participation of Omani companies.
PDO's recent appointment of Dr Aflah al Hadhrami as its first Omani national Managing Director is a testament to the country's commitment to develop local talent and expertise in the energy sector. With his extensive experience working with multinational companies and his involvement in shaping Oman's Vision 2040, Dr Al Hadhrami is rightly positioned to drive the EOR agenda forward and take the sector to new apex.
Sustainable future for Oman's oil and gas industry:
As Oman continues to embrace EOR techniques and journey to net zero, the country is not only securing its own energy future but also setting a global example for responsible and sustainable oil production. By coupling EOR with Carbon Capture, Utilization, and Storage (CCUS) technologies, Oman can pave the way for a more clean and sustainable approach to oil production.
The success of Oman's EOR journey will serve as a model for sustainable energy production and economic diversification in the region and beyond. With the right investments, policies, and collaborations, Oman can become a hub for EOR expertise, attracting investment and fostering a more prosperous and sustainable future for all its people.
In conclusion, Enhanced Oil Recovery represents a significant opportunity for Oman to unlock the full potential of its oil reserves, drive economic growth, and secure its energy future. By embracing this technology and fostering a supportive ecosystem, Oman is positioning itself as a leader in sustainable energy production and setting the path for a brighter, more resilient future.
Dr Yousuf Hamed al Balushi
yousufh@omaninvestgateway.com
www.omaninvestgateway.com