Oman’s complex geology and reliance on small, scattered fields rather than a single supergiant discovery have historically made oil production relatively difficult in comparison with the region’s largest producers. Since oil was first discovered in 1962, state operator Petroleum Development Oman (PDO), the country’s largest hydrocarbon producer, has developed many of the easiest-to-produce fields.
As fields have matured, PDO and international upstream players in Oman have had to turn to secondary and tertiary oil recovery techniques that involve injecting gases and fluids to maintain reservoir pressure and output. This helped PDO to increase oil production to more than 700,000 b/d last year for the first time since 2003 (see chart 1). The state-backed company operates the country’s massive Block 6 (EDO 60%, Shell 34%, Total 4%, PTTEP 2%), which was responsible for 78% of the country’s 1mn b/d oil output last year (see chart 2). (CONTINUED - 1306 WORDS)
