JULY 7, 2023

Oxy Oman makes 12 new hydrocarbon discoveries in 2022

MUSCAT: Oxy Oman says an ongoing exploration programme covering the company’s sizable portfolio of onshore hydrocarbon assets resulted in 12 new oil and gas discoveries during 2022.

A wholly owned subsidiary of US-headquartered Occidental, Oxy Oman said six of the new finds were made in its majority-owned Block 9 concession in north Oman – an asset that accounts for a significant share of its total oil and gas production. A further two were uncovered in the adjoining Block 27 concession, while Block 53 in central Oman, featuring the Mukhaizna heavy oil field, yielded two discoveries. Finally, Block 65 in Al Dhahirah Governorate, produced the remaining two hydrocarbon finds.

Details about the new discoveries were featured in the 2022 Annual Report of the Ministry of Energy and Minerals published earlier this week.

It noted that an exploration programme covering Oxy Oman’s wholly owned and operated Block 72 in south-central Oman saw the completion of 2D seismic processing.

Oxy Oman, with a portfolio of over 24,000 sq kilometres of upstream acreage distributed across eight onshore blocks, is the largest independent oil and gas operator in the Sultanate of Oman. Gross production averaged 220K barrels oil of oil equivalent (boed) in 2022 (comprising 201K boed of fluids and 110 million standard cubic feet of gas). From its prolific Safah field in Block 9, gross production hit a record 103K barrels of oil per day in September, it said.

Also during the year, a number of projects were progressed across Oxy Oman’s upstream assets. In Block 53, the Mukhaizna Facilities package included well hookups and off-plot infrastructure, facility improvement projects, permanent power conversions, and debottlenecking scopes.

A pair of tight reservoirs in the block were successfully tested during the year as well, the company said.

“The Oman North 2022 programme primarily focused on developing production gathering facilities through the expansion of Safah South Wedge E Area Phase 2 and 3; and progressing additional gas compression facilities (Wadi Latham and Jalal Gas Compressions) which added 90 MMSCFD compression capacity in Block 9 for gas lift and sale.”

Significant progress was also reported in the company’s decarbonisation drive. “Oxy’s climate goals are to achieve net-zero emissions in its operations and energy use before 2040, with an ambition to do so before 2035, and net-zero emissions from its total carbon inventory, including the use of its products, with an ambition to do so before 2050. With decades of experience in large-scale CO2 transportation, use and storage for Enhanced Oil Recovery (EOR), Oxy is applying its carbon management expertise to advance low-carbon initiatives that it believes will sustainably enhance its business,” it said.

As part of its Net Zero commitments, the company is also targeting 50 per cent emission reductions by 2030, while eliminating routine flaring by 2027. In support of these goals, it has pledged to develop new technologies and leverage its expertise in Carbon Capture Utilization and Storage (CCUS), Net Power, and Enhanced Oil Recovery.

Source: https://www.omanobserver.om/article/1139743/business/energy/oxy-oman-makes-12-new-hydrocarbon-discoveries-in-2022