Muscat: OQ Exploration & Production (EP), the upstream energy arm of Oman’s wholly government-owned integrated energy group OQ, has seen a ten-fold increase in its oil and gas output from its hydrocarbon assets in Oman over its 15-year history, positioning it among the country’s leading upstream energy players.
According to a key official, OQ EP has also emerged has a “strategic” unit within OQ Group, as it contributes significantly to the local economy, while generating revenue for the Group’s shareholders.
Speaking at a business forum held in the city recently, Mohammed al Habsi, Vice President – Joint Venture Assets, OQ EP, said the upstream arm’s output is currently estimated at 225,000 barrels of oil equivalent (boepd), up from around 18,000 bpd at the time its inception in 2009.
Driving this “successful growth story”, he said, was OQ EP’s acquisition of an array of hydrocarbon assets – operated and non-operated – that have since helped bolster oil and gas production to the current levels.
Among its biggest assets is BP-operated Block 61, home to the prolific Khazzan and Ghazeer gasfields, which contribute around a third of Oman’s gas production presently. Also noteworthy is Oxy-operated Block 9 in the northwest, which accounts for around a tenth of Oman’s total production, he said.
In his presentation, Al Habsi also highlighted OQ EP’s expertise in operating some of its assets, including Block 60 in central Oman, which was until last year 100 per cent owned and operated by the company. (Earlier this year, Indonesia’s Medco Energi acquired a 20 per cent interest in the block).
Another key asset is Block 8, the country’s first offshore license located in the north of Oman, which is 100 per cent owned by Musandam Oil & Gas Company (MOGC), a subsidiary of OQ EP. Natural gas from the block is processed by a gas plant that also feeds a power generation project serving Musandam Governorate, he said.
Other “success stories” linked to its upstream portfolio include the Oxy-operated Block 53, also known as the Mukhaizna Block. The license currently hosts the region’s largest thermal enhanced oil recovery project where steam is generated to heat the asset’s heavy oil resource in order to bring it to the surface.
Block 65, also operated by Oxy Oman, has the makings of a success story as well, the Vice President stated. In the three years since it acquired a 27 per cent stake in the block, some of its oil potential has already been produced and exported, he said.
Rounding off its portfolio is Block 10 – part of the gas-rich Greater Barik zone – operated by Shell with a 53.45 per cent working interest, with OQ and Marsa LNG (a joint venture between TotalEnergies and OQ) holding 13.36 per cent and 33.19 per cent respectively.
Outside of Oman, OQ EP manages the non-operated Dunga asset in Kazakhstan on behalf of OQ Group. “So there has been significant growth since inception, as you have seen, and we are trying to continue the same (trend) through strong and valuable joint venture partnerships. We have very good relationship with major international oil companies, like BP, Shell, Oxy, Eni and so on, and we also have a strong focus on sustainability, HSE and our people,” he added in conclusion.
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