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New gas reserves eyed in Oman
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Thursday, 06 Dec 2012
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The Sultanate has made unprecedented progress in developing tight and acid gases as it dug the deepest well in the Middle East region more than 7 kilometers deep in a bid to look for the non traditional gas resources.

An official at the Ministry of Oil and Gas in a statement during the opening of the 8th Gas Arabia at Inter continental Hotel hailed the works undertaken by BP and the progress made in developing the two biggest gas fields in the Sultanate Khazzan and Makarim.

He said that the appraisal wells were dug and long-term production tests were completed. An agreement could be reached between the government and BP to ensure comprehensive development of the two oil fields.

The official said that as per the plan by BP Company, the production is expected to be about 1 billion cubic feet of gas per day. This will add one third of the current gas production, thus ensuring sustainability of gas production in the long run. Efforts made by Petroleum Development Oman, Occidental, Oman Oil Exploration and Production company, Petronas and other companies have made good progress in exploring new gas reserves that complement the current ones.

The Sultanate, which seeks to develop gas based industry always endeavors to provide local industries with gas at reasonable prices. He added that the supplies to gas companies used to focus on the existing industries in Sohar and other areas in the Sultanate at which many major and important projects were being set up.

The award of a contract for Oman Gas to avail gas to Duqm industrial area will soon be unveiled. This is part of the government plans to develop the industries in Duqm area. This includes construction of main oil refinery and petrochemicals complexes.

He pointed out that the project is in the tender phase and is expected to be awarded soon, especially it has been approved by the Sultanate's government and is on the company schedule. The gas is expected to reach Duqm area by 2016.

He affirmed that many contracts were signed with consumers when the gas price was low. Despite this, the ministry started negotiations with a number of local and international companies. Previous prices have already been replaced with reasonable prices that resulted in more revenues to the state.

On the world level by 2030 the gas contribution will be equal to other sources such as oil and coal. As for the price of gas in the world markets gas prices witnessed a rise in 2011 in Japan, EU countries compared to a slight decline in North American countries.

Source - Oman Daily


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