PDO banking on Khulud field for gas production

Located in the Yibal-Fahud area of central Oman, Khulud – with an estimated reserve of 'several trillion cubic feet' - is PDO's first tight gas development

Khulud is PDO’s first tight gas development.
Khulud is PDO’s first tight gas development.

Oman’s state-owned oil giant Petroleum Development Oman (PDO) has been counting on its Khulud tight gas development to increase its natural gas production."

Located in the Yibal-Fahud area of central Oman, Khulud – with an estimated reserve of ‘several trillion cubic feet’ - is PDO’s first tight gas development.

In an interview with Oil & Gas Middle East, PDO’s managing director Raoul Restucci said the Khulud tight gas project is ‘one to watch out for’.

“Since January 2014, six wells have been producing through an Early Production System that was commissioned in 2013 to test the long-term potential of the field,” Restucci said.

“Khulud’s ‘tight’ gas characteristics require the use of unconventional techniques to unlock the gas and make it flow to producing wells,” he said.

However, the challenge for PDO is producing this gas at Khulud due to its depth. Typically the reservoirs in Oman are often located in excess of 5.5 kilometres — far deeper than tight gas found elsewhere in the world.

On another note, Restucci said he is optimistic that Oman and PDO specifically can weather the pressures of the low oil prices. “I remain optimistic that the nation’s oil and gas sector generally, and PDO specifically, can rise to the current challenge. However, we have to ensure we get the fundamentals right. We need to press ahead with a continued focus on business improvement and sustainability, operational excellence and project delivery while all the time adhering to safety as the bedrock of everything we do,” he said.

PDO has been coerced into adopting cost-control measures and tying up lose ends. “Yes, we have to adapt and adopt new ways of working as we pursue cost control measures. However, we should seize the opportunity to eradicate wasteful and inefficient work practices for good, embracing new technologies and maintaining a robust pipeline of talent and expertise,” Restucci commented.

“Our mantra is: Never waste a crisis. In periods of difficulty and uncertainty, it’s key to get the fundamentals right and our track record and robust business plan have enabled us to absorb the impact of the price fall and continue to deliver key growth and development targets to our shareholders,” he said.

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