The Business Year

Though finally rebounding, price cuts have forced drillers to become leaner than ever, extracting value from their supply chain as assiduously as oil from the ground.

Gong Changli

CEO, Daleel Petroleum

Everyone knows the current situation is tough because of low oil prices, and Daleel Petroleum faces these same issues. Because of this, our current strategy focuses on optimizing and fine-tuning our operations because we cannot stop moving forward; we have to ensure every cent we spend is efficient and effective. This situation is a challenge, but at the same time presents us with opportunities to review our business plan and further optimize our operations to determine the most effective way forward for the business. All our projects must be reviewed and optimized. The “easy oil“ in Daleel has fewer prospects, and we are now facing the challenge of extracting marginal oil in a cost-effective way. Some small trials to exploit marginal oil reserves are ongoing and expected to add more value to Daleel’s portfolio if successful and cost-effective. As a prudent operator in Oman, we are not slowing down our exploration and drilling activities because we have to be ready for the future.

Stephen Kelly

President & General Manager, Occidental of Oman (Oxy)

We have been in Oman for 34 years and have operations in various locations across the country. In terms of production levels, we have grown considerably from the 1980s, when we started Block 9, which has boosted our growth enormously. Block 53 has also been paramount to our growth; it produced around 8,000bpd when it first started operating and in just a few years has produced 15 times that amount. It is currently the largest producing field in the country. That is the block where we generate steam as well as operate a water treatment plant that is among the largest mechanical vapor compression plants in the world. Our gross production across all blocks in 2016 was around 250,000bpd, while our company’s share amounts to 96,000 barrels of oil equivalent (BOE) per day. What’s more, we signed an agreement for Block 62 several years ago and have carried out extensive exploration activity there. It has a challenging geology and a remote location in terms of proximity to infrastructure, but we are making good progress all the same.

Yousuf Al Ojaili

CEO, Yousuf Al Ojaili

The two challenges we faced in 2017 were to bring the Khazzan project on stream safely and maintain our estimated cost for the project; I am pleased to say we did both. Not only were we able to deliver the project a few months ahead of time, but we also completed under the expected budget. The total capacity of the Khazzan project is one billion cubic feet of gas per day. We are gradually ramping up and increasing production to the planned capacity sometime in 2018. Besides Khazzan, Ghazeer is also coming up. We have other projects that parts of BP are considering, such as a downstream project based in Duqm in conjunction with the Oman Oil Company (OOC) and come on stream in 2023 or 2024. We are also active in petrochemical licensing; we have a technology licensing agreement with Oman International Petrochemical Industries Company (OMPET), where we will provide technology for a project in Sohar. It is proprietary technology, and we will be involved in training the OMPET staff to support commissioning, ensuring we continue to share BP’s knowledge and expertise.



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