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PDO targets 600,000 bpd output

MUSCAT, May 25, 2016

Petroleum Development Oman (PDO), the sultanate's leading crude oil producer, is planning to achieve an output of 600,000 barrels of crude oil per day (bpd), said the company’s managing director.

PDO accounts for around 70 per cent of the country's total crude oil production.

“PDO is trying to raise its output to 600,000 barrels per day, which we originally planned for 2019,” Raoul Restucci was quoted as saying by a Times of Oman report.

“With the sharp fall in global oil prices, PDO still managed to surpass expectations right across the business,” he said on the sidelines of the Oil & Gas Year Oman 2016 sixth strategic roundtable.

Average oil production of PDO for 2015 was 588,937 bpd, the highest since 2005 and almost 14,000 bpd above the planned target.

Gas production was 83 million cubic metres a day, one million cubic metres above the planned target, as the company stepped up its effort to meet growing national gas demand.

Speaking about the current oil price, Restucci said: “We are near $50 now; for PDO it is a very profitable number.”

According to him, the average cost of production for the first grade oil is $5 per barrel, for the second grade it is $12 and for the third grade is $25.

“Most of our projects are very attractive, all of our projects generate double digit returns even at the low prices,” Restucci confirmed.

Meanwhile, PDO has begun a new phase of the clean-up and restoration of a farming area contaminated by an oil spill in the village of Rusais near Izki, said a report in Oman Daily Observer.
The enhanced programme has been launched after thorough studies and an assessment of the impact of a leak, which occurred in the early 1980s, as a result of a failed check valve on a section of the Main Oil Line pipeline.
 




Tags: Oman | Crude | PDO |

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