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CCED gets approval of Commercial Declaration for Blocks 3 & 4 operations

 

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His Excellency Dr. MOHAMMED BIN HAMED AL RUMHY, Minister of Oil & Gas AND

Mr. SAID TAWFIC KHOURY, President of the Board of Consolidated Contractors Group (CCC)

•Ministry awards 27 years operation extension

•Production has increased from 650bpd in 2010 to 15,000bpd currently

•The company maintains an Omanisation rate of close to 70 per cent

MUSCAT: CC Energy Development (CCED), a privately owned oil and gas exploration and production company in the Sultanate, has got an extension from the government to operate 27 more years in Blocks 3 and 4, recently.

"Working together in unlocking the potential of Blocks 3 and 4 with CCED was an excellent experience. Within a short span of time they have proved their mettle. With the help of innovative technology and new ideas, we are now able to boost our production. With the assistance of CCED, the Blocks 3 and 4 have now been transferred into commercially viable blocks," Saif Hamed Al Salmani, Director General of Planning and Studies at the Ministry of Oil & Gas and Chairman of the CCED Joint Management Committee, said while congratulating the CCED's achievements it has made in the short span of time.

CCED, which entered the Sultanate in the end of 2007, is part of the larger Consolidated Contractors Group.

"We are confident that they are committed and will perform to the best mutual interests of both the Sultanate and the joint venture," he commented while asked about the extension of period awarded to CCED for operations in Block 3 and 4.

"With the help of different players, different ideas and new technologies, we have moved ahead a lot in oil production in Oman. The strategy initiated by the Ministry of Oil and Gas developed 15 years ago to overcome the hurdles we faced in those days is materialising. Ramping up the production with the help of partners like CCED is aiding the economy," the Director General said.

In 2009, CCED and its partners had two successful discoveries of oil drilled and it managed to commence production in a record seven months after the completion and testing of the second exploration well with first oil being introduced in July 2010.

Production in the blocks increased from an average of 650 bpd in 2010 to 3,400 bopd in 2011 and to 12,400 bpd in 2012. This fast growth has continued, bringing the current production up to 15,000 bpd, and is increasing monthly due to further appraisal, discoveries and a water injection project that commenced earlier this year. The total oil produced from July 2010 to the end of 2012 is 6.5 million barrels.

"The Ministry of Oil and Gas, under the leadership of the Minister of Oil and Gas, have constantly been there to offer guidance and full support which allows us to achieve these tasks and increase our production in record timing," Shahrokh Etebar, CEO of CCED, said.

CCED is partnering 30 per cent shares with Tethys Oil AB and 20 per cent shares with Mitsui E&P Middle East BV.

According to Etebar, the partnership has drilled 70 wells in the two blocks and is expecting to drill more than 40 wells in the current year.

"In 2012, the focus was on the Field Development Plan. CCED has acquired around 2,200 square kilometers of 3D seismic and is planning to acquire more," he said.

CCED has a 50-km-long 10-inch pipeline connecting the two fields. The oil comes from Farha in Block 3 to Saiwan in Block 4 through this pipeline where it gets mixed. Then it is transported through a 70-km-long 16-inch wide pipeline from Saiwan to the PDO's facility at Alam station. The quality of oil produced in Farha and Saiwan is good quality oil and enhances the quality of the Omans produced oil.

CCC was already involved in the oil and gas business in Yemen, but only as a partner, not as an operator. They also had some offshore discoveries in Gaza, with BG as their operator. Then a few years ago, CCC became an exploration operator in Yemen.

But with CCED in the Sultanate, it was the first time the group became an exploration, appraisal, development and producing company.

The company which is maintaining an Omanisation rate of close to 70 per cent is aiming to become one of the larger oil producers in Oman.

Currently, the estimated reserves of the company are around 100 million barrels and the company is still in the process of appraising and finding more reserves every month.

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