Gas guzzling Oman sizes up shale gas development

Oil Minister confirms study into shale gas development at PDO fields

Oman's gas demand has sparked interest in shale gas recovery.
Oman's gas demand has sparked interest in shale gas recovery.

Oman is investigating exploration for shale gas, as the Sultanate looks to ease the gas squeeze holding back its industrial and petrochemical sectors.

According to a Times of Oman report, the concession areas operated by PDO are being evaluated for test drilling.

"At the moment we are not drilling. It is just a study," said Khalifa Mubarak Al Hinai, advisor at the Ministry of Oil and Gas, according to the Times of Oman. Al Hinai also said that Oman government will discuss possible imports of Iranian natural gas with officials visiting next week.

Al Hinai also said that Oman government will discuss possible imports of Iranian natural gas with officials visiting next week.

1.5 billion cu ft per day of Oman’s 3.5 billion is committed for export on long-term LNG contracts to Asia. The arrangement is now regarded as an overreach as domestic demand for gas increases and further conventional sources of gas have largely eluded the Sultanate, which now imports 140 million cu ft per day of Qatari gas via the Dolphin pipeline.

Oman is pinning its long-term gas supply hopes on a massive $15 billion contract with BP to develop ‘tight’ gas reservoirs deep under the Khazzan and Makarem fields in the north-central region. Negotiations are continuing.

 

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