Select Page

Occidental Oman Inc, one of the private sector oil producing companies, yesterday announced its plans for the commercialisation of Block 27 (Wadi Aswad) through the development of Khamilah field with an estimated reserves of 3.04 million barrels of oil.

Occidental Oman Inc, one of the private sector oil producing companies, yesterday announced its plans for the commercialisation of Block 27 (Wadi Aswad) through the development of Khamilah field with an estimated reserves of 3.04 million barrels of oil.

Production is scheduled to start in July 2006.

To mark this occasion, a Block 27 commercialisation ceremony was held at the Grand Hyatt Hotel in the presence of Nasser Al Jashmi, undersecretary at the Ministry of Oil and Gas; Jim Eastlack, Occidental’s president and general manager; and members of the media.

‘Block 27 commercialisation ceremony marks another milestone in what has been a remarkable partnership between the government of Oman and Occidental,’ Nasser Al Jashmi, undersecretary at the Ministry of Oil and Gas, said in his comments.

‘During its 26 years in Oman, Occidental has played a significant role in the development of the Sultanate’s oil and gas sector. Its contribution to the increase of the oil and gas production, most recently, through the completion of the Northern Oman Gas project and the startup of the strategic Mukhaizna Field development, demonstrates its commitments to achieve sustainable growth that is both economically and environmentally sound,’ it was pointed out.

Further speaking Nasser said: ‘Today we witness the commercialsation of Block 27, a step which does not only add another bright page to Occidental’s history in Oman but also reinforces our government’s commitment to partnership with foreign investors.’

‘We are looking forward to share the benefit of this project with Occidental and we are certain that with our continuous cooperation with Occidental we shall realise our aspirations,’ he added.

The development plan calls for the drilling of five new producer wells, in addition to the existing two. This new project derives its significance from the opportunities that it will create to explore and develop a cluster of smaller accumulations along with the new production infrastructure (the Khamilah ‘corridor’).

In the aggregate, these accumulations can make a valuable contribution to the increase of the oil and gas production in Oman.

‘The fact that the oil and gas sector currently accounts for more than 40 per cent of the GDP and is currently the largest employer in the private sector means that the commercialisation of Block 27 will open up new opportunities for young Omanis graduating from colleges and universities to enable them to eventually manage this vital resource,’ Nasser pointed out.

‘The government of Oman recognises that in order to encourage investors for the development of the oil and gas sector to the benefit of both the investor and the resource holder requires the development of a good fiscal climate. This in turn requires a careful balance between our need to develop a forward looking oil and gas industry that is sensitive to issues of the environment in which the investor operates and our desire for income generation projects with foreign investors,’ he said.

Besides the remarks from Nasser, a presentation was made by Jim Eastlack.

Occidental expressed its gratitude to the Government of Oman for the support provided and praised the government’s encouragement for the development of the private sector and the establishment of a secure and positive environment for foreign investment.

Source : www.menafn.com

Share This