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PDO Awards Contracts for Qarn Alam Steam Project

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Petroleum Development Oman (PDO) has awarded two major engineering, procurement and construction (EPC) contracts for the Qarn Alam steam-injection project. A contract for "on plot" facilities (those erected at the field site) was awarded to Dodsal and a contract for "off plot" facilities (the oil and water flowlines and associated hardware outside of the field site) was awarded to Galfar Engineering & Contracting.

The Qarn Alam steam-injection project is the world's first full-field steam-injection project based on thermally assisted gas/oil gravity drainage (TAGOGD) in a fractured carbonate field. The project scope includes drilling some 150 wells and installing facilities to treat water and generate around 18,000 tonnes per day of steam. Additional facilities will be built to process the incremental oil and gas produced at the field as well as disposing of excess produced water in deep reservoirs. Close to 220 kilometers of pipelines and flowlines will be installed to connect these facilities with the wells for water supply, oil production, steam injection and water disposal.

The Qarn Alam field, which was discovered in 1972 and started producing oil in 1975, contains a moderately viscous crude in rock that is rather impervious to its flow. What little oil does flow out of the rock formation does so under the influence of gravity, through a network of cracks that criss-cross the formation. The EOR recovery process being applied TAGOGD is based on injecting steam into the formation's fractures to heat the low-permeability oil-bearing rock. As the rock is heated, gas is liberated and the viscosity of the oil is reduced, flowing much more easily into the fractures under the action of gravity. The fractures thus serve as conduits for both the injected steam and the produced oil. Unlike a conventional steam-injection project, in which the steam serves to drive oil to producing wells, the steam at Qarn Alam is used as merely a heating agent to enhance the existing gravity drainage mechanism. This feature of the project allows the number of wells, and hence development costs, to be kept to a minimum.

"Most of the steam will be generated by waste heat recovery from the existing Qarn Alam Power Station, thereby significantly reducing the project's carbon dioxide emissions and saving on gas consumption. This is part of PDO's strategy to preserve the environment while benefiting from the waste heat. The start-up date of all facilities will be around 2010. PDO is committed to working in partnership with the two contractors to enable the project be delivered on budget and on time" commented Saif bin Hamed al Hinai, Oil Director for the Company's northern assets.

"This is a major project which will cement PDO's position as a leading company in the application of EOR technology," commented PDO managing director John Malcolm. "The Qarn Alam Steam project will help sustain Oman's oil and gas production over the coming decades."

Petroleum Development Oman (PDO) is the major exploration and production company in the Sultanate. It accounts for more than 80% of the country's crude-oil production and nearly all of its natural-gas supply. The Company is owned by the Government of Oman (which has a 60% interest), the Shell Group (which has a 34% interest), Total (which has a 4% interest) and Partex (which has a 2% interest). Gas fields are operated by PDO exclusively on behalf of the Omani Government.

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