3 minute read
Contents
Sector analysis
The future
of EOR in Oman
Nur Ain Noor Hisham
Oil has been the heart of energy for the Middle East countries for many years. While the energy sector is looking towards alternative sources of energy, demand for oil is still high as oil is still relevant in our daily lives. In layman’s terms there is nothing around us that is not directly or indirectly contributed by oil. For instance, bicycles, house mops, roofs, trash bags, paints, speakers, cosmetic products, and the list goes on. According to BP’s 2020 statistical review report, world oil consumption has recorded an increase of 1.4% annually since 2008, with the Middle East reported at 2.2% annually. As such, there is a need to ensure that oil recovery is maximised to meet these demands. In terms of the technology used to maximise oil recovery, enhanced oil recovery (EOR) comes into play. EOR or tertiary recovery is a technique utilised for decades by operators to further extract oils from depleted reservoirs when the conventional natural flow or waterflooding is no longer efficient in recovering remaining oil in reservoir. Oil recovery rate for the conventional primary and secondary recovery method can generally go up to 50%. However, with EOR, the recovery rate of reserves is ramped up to more than 50% and can go as high as 80%. The three main EOR methods implemented throughout the world can be categorised as chemical EOR, thermal EOR and gas injection EOR. The selection for the best method of EOR to be implemented is done based on a detailed study of the specific field; the reservoir depth, oil viscosity etc. Part of the early stage for the project is a technical and financial feasibility study. Field trials done during this stage can be very expensive and should the results not meet the company’s technical and financial requirements, the project can either take another route suited to the requirements with lesser uncertainty or be abandoned completely. Regarding deployment of EOR in the Middle East, Oman in particular has taken the lead, joined by neighbouring countries, for instance, the UAE. Oman has been the pioneer of EOR technology in the region. Petroleum Development Oman (PDO), the national oil company of Oman led the country in EOR with first trials of EOR in the late 1980s and the first EOR programme completed in 1989. As for full operations commissioning of an EOR project, PDO successfully commissioned an EOR project in Marmul in October 2010. The Marmul project was the first project in the Middle East to use chemical polymers as a thickening agent for water injection. PDO’s EOR activities are mainly focused on the technically and commercially challenging heavy and ultra-heavy oil fields. In terms of the technologies, PDO’s EOR activities in Oman are more focused on chemical EOR and thermal EOR deployment. PDO is currently aiming to develop a technically challenging block in Oman known as Block 6 in the Khuff and Sudair reservoirs at the Yibal field. The EOR project at the field is worth approximately US$2.5bn and is located in the North of Oman. PDO’s target for the EOR project includes a production target of 20,000b/d of oil and 211 MMcf/d of gas for a period of 20 years. The project is still ongoing with first gas and oil due in Q1 2021. Other EOR projects in the country include phase 3 of the Block 6 Marmul polymer project in southern Oman. The Marmul project has been developed in phases with phase 1 starting in 2011, phase 2 in 2015 and phase 3 since 2017. Phase 3 of the project aims to develop 80 million barrels of incremental oil, with first oil targeted by Q1 2023. Another interesting project in Oman is the integration of renewable energy in the oil industry project called the Miraah Solar Steam Oil Recovery project by PDO and GlassPoint. The project will comprise of a 1,021MW solar EOR plant in the Amal oil field located in southern Oman and expected to come online in 2023.
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In Oman, due to the technical challenges and high cost implementation of EOR, the government is incentivising international oil companies to implement exploration and field development in depleted reservoirs; which in turn makes EOR favourable in the country. As stated in EIA’s 2019 Oman report, the incentives include generous contract terms for IOCs such as significant equity share in a project, making Oman more favourable for EOR implementation compared to their neighbouring countries in the region.
