Oxy to start production in Oman by July

Occidental Petroleum (Oxy) will start commercial production from Block 27 in Oman by July. The production, the company said, will be through the development of Khamilah field, which has estimated reserves of 3.04 million barrels of oil.

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By  OGME Staff Published  January 8, 2006

Occidental Petroleum (Oxy) will start commercial production from Block 27 in Oman by July. The production, the company said, will be through the development of Khamilah field, which has estimated reserves of 3.04 million barrels of oil. “Block 27 commercialisation ceremony marks another milestone in what has been a remarkable partnership between the government of Oman and Occidental,” said Nasser Al Jashmi, undersecretary at the ministry of oil and gas. “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 oil and gas production, most recently through the completion of the Northern Oman Gas project and the start­-up of the strategic Mukhaizna Field development, demonstrates its commitments to achieve sustainable growth that is both economically and environmentally sound,” he said. In June last year, Oxy snatched Mukhaizna from Shell, when disagreements peaked between the Omani government and the Anglo-Dutch company over the development of the field, which contains very heavy oil. According to a company statement, the development plan of Khamilah calls for the drilling of five new producer wells, in addition to the existing two. Occidental has been active in Oman since 1979. During the first quarter of 2005, Occidental’s daily net production in Oman averaged 23,000 barrels of oil and 56 million cubic feet of gas, for a combined rate of 32,000 barrels of oil equivalent.

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