Majority state-owned Petroleum Development Oman (PDO) plans to invest $11bn in a drive to produce 1bn barrels of oil by 2022, according to the company’s newly released 2012 Annual Report. PDO has launched what it calls the Central Project Delivery Organization and intends to implement 16 “significant” projects as part of the investment scheme.

PDO’s crude production fell sharply between 2000 and 2006 but leveled out after the company began an aggressive enhanced oil recovery (EOR) program at fields in the company’s massive Block 6 license. EOR is set to account for 27% of PDO’s production portfolio by 2021, rising from 3% at end-2012 and a targeted 16% by 2016. Primary production will be slashed from 57% in 2012 to 41% by 2021. Secondary techniques, such as water flooding, will continue to play a major role in recovery, though output from EOR projects will be critical in replacing the decline from maturing fields, the company said. (CONTINUED - 771 WORDS)