“Petronas is an integrated energy company. We are into LNG (liquefied natural gas), petrochemicals, refining, and E&P. Hopefully there are opportunities not only in E&P. Apart from the very close relations between Petronas and companies (in Oman), there are also close relations with the Government of Oman. We are eagerly looking to start work here in Oman,” Datuk Abdullah Karim, vice president of Petronas said.
Petronas entered into an exploration and production sharing agreement with the government for block 63.
“I’m happy that finally we are able to have a Block to explore and develop. And I’m confident that, with the encouragement and guidance of the Omani government and our partners, we will be able to develop the block’s hydrocarbon potential,” Karim said.
As per the agreement, Petronas Carigali Sdn Bhd, the exploration and production arm of Petronas, will look for gas in the 3,709 square kilometers block (also known as the Natih/West Raba concession) in the west of the Sultanate. The company has set up an unincorporated joint venture with two wholly Omani firms — the government-owned energy investment vehicle Oman Oil Company and Industrial Petrochemicals LLC. Datuk Abdullah Karim, who is also chief executive officer and managing director of Petronas Carigali Sdn Bhd, said the company was enthusiastic to get started with the appraisal of block 63’s gas potential.
“We know there is gas. It’s been discovered before, but the volumes will have to be determined. To determine, we will have to do appraisals, drill wells and confirm that the volume is good, in order to make the development viable. At the same time, there are other prospects that are not explored yet, which we know from the seismic and we hope to drill exploration wells in these prospects. So based on the appraisal of the existing discovery, and also the new prospects, we will develop the field as a whole and produce gas.”
Petronas aims to deploy some of its formidable expertise in oilfield development in unlocking the gas potential of Block 63.
“We in Petronas are exposed to big and small fields, and new and old fields. In Malaysia, we are operating fields that are 30-40 years old, and through good reservoir and facilities management, we have been able make them viable. One of our strengths is to take some of the marginal fields and make them (productive), using a lot of creativity in terms of costs, facilities and very importantly, how we look at the reservoir. We have good people in geosciences, petroleum engineering and so on. In tight formations, we have to be able to master the art of how to fracture the reservoir to allow for the gas to flow. Significantly, the block 63 concession marks the realization of Petronas’ longstanding desire to develop stronger energy links with the Sultanate,” says Karim.
“Petronas has for many years been looking to have some ventures in Oman. There has been some cooperation with Petronas in the area of LNG. About 6-7 years ago, Petronas was involved in LNG cargo swaps. There has also been a lot of technical exchange between Petronas and companies (in Oman). We are also close to PDO, with which we do a lot of exchanges.” Asked about Petronas’ plans, if any, to expand its presence in Oman’s oil and gas sector in the future, Datuk Abdullah Karim stated: “We will study other blocks that are available. If the opportunity is right then we will want to venture into those blocks.”
