PDO to Proceed with Full Development of Mabrouk

Petroleum Development Oman (PDO) has received shareholder approval to advance with the full development of the Mabrouk field. The new field development plan for the field, which was discovered in 1979 and is currently producing around 8,000 barrels a day, calls for the drilling of up to 80 new wells and the construction of a new production station and gathering system.

The project is being fast-tracked so that the additional incremental production is expected on stream in late 2009. When all the new hardware has been fully commissioned, the field is expected to produce around 15-20,000 barrels a day of oil and 1-2 million cubic meters a day of gas. The gas will be delivered to the Saih Rawl gas processing plant where it will enter the Government Gas System.

The project has been split into two engineering, procurement and construction (EPC) packages which will be carried out under existing service agreements. Work on "on plot" facilities (those erected at the field site) will be carried out by in-house engineering and maintenance contractor Integrated Engineering & Construction Company while "off plot" facilities (the oil and water flowlines and associated hardware outside of the field site) will be executed by Galfar Engineering & Contracting.

To date, just 1% of the oil-in-place at Mabrouk has been produced. The full-field development plan will increase the recovery factor to around 10-12%.

"This is an important project that will help sustain PDO's oil production over the long term," said PDO managing director, Mr. John Malcolm. "It highlights the continued potential for conventional oil production in the Sultanate."

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.