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Exploration &
Production
Petrogas E&P LLC
Petrogas E&P is the holding company for MB Holding Company’s
exploration and production activities in Oman and overseas,
namely Petrogas LLC, operator of Block-7 in Oman; Mazoon
Petrogas SAOC which holds 50% interest in Block-5 in Oman and
50% stake in the operator company Daleel Petroleum. Also through
its Indian project office, Petrogas E&P manages three
exploration concessions, being operator in one. The company has
added two more subsidiaries under its fold in 2007 -- Petrogas
Malih which holds 50% interest in the Exploration Block 45 & 48
and Petrogas Rima (company formed in Jan’08) holding 75%
interest in the Rima Small Fields Service Contract awarded to
Petrogas E&P by Petroleum Development Oman. Finally, Petrogas
E&P acquired a 30% interest in oil producing Area A, onshore
Egypt, operated by Oil Search Eastern Desert.
Corporate Values
HSE is at the core of Petrogas values. The company seeks to
improve its HSE systems and performance and always works within
the laws, regulations and permits of the countries hosting its
operations. Petrogas sees, appropriate attention to HSE and
performance excellence, as pre-requisite to its business
success. With more than 200 employees and a requirement for
intensive recruitment to staff up its new subsidiaries and
affiliates, the company sees its work force as its most valuable
asset. Quality recruitment is perhaps the most critical factor
in growing the company and a challenging one in the current
tight employment market for the oil and gas professionals.
Training and development of Omani staff is seen as vital to
secure a stable, experienced and motivated work force for the
future. More than 70% of Petrogas staff is Omani. Petrogas also
values the contribution of its international staff who shares
their experience and know-how with their colleagues. Diversity
and multi-disciplinary teamwork are seen as essential factors to
maintain Petrogas’ drive for continuous improvement and growth.
Petrogas LLC (Block 7)
Petrogas LLC was established in January 1999, and in the same
year acquired Block 7 (Butabul) Oil and Gas concession in Oman
from Elf Petroleum and became the sole operator of Block 7.
Prior to acquisition of Block 7, the production was declining at
a rate of 17% annually. Since Petrogas took over operations, the
decline was arrested and the field continued to produce at
around average of 13,550 barrels/day.
Mazoon Petrogas SAOC and Daleel Petroleum Company (Block 5)
In January 2001, Mazoon Petrogas SAOC acquired Block 5 (Wadi
Aswad) oil and gas concession from Japex Oman and became the
100% owner and operator of Block 5. Subsequently the company
sold its 50% rights in Block 5 to CNODC, a subsidiary of China
National Petroleum Corporation (CNPC). The two shareholders then
formed a joint venture, Daleel Petroleum Company, to operate
Block 5. At the time of acquisition, Daleel oilfield had
remaining reserves in the order of some 15 million bbls.
Since 2002, Mazoon Petrogas SAOC and CNPC have jointly invested
over US$ 180 million in production enhancement projects, mainly
in the implementation of water-flooding to increase production
from 5,000 bpd to 30,000 bpd. Significant upside is present in
the Daleel Natih reservoir that is under appraisal in future
exploration elsewhere in the Block.
New Business Development
In 2004, Petrogas E&P LLC formed a new business development
division to handle the evaluation and acquisition of new E&P
assets. Evaluations covered assets not only within Sultanate of
Oman but spanning a gamut of assets in various countries. The
main regions considered outside Oman are the Middle East, Africa
and India. In 2007 Petrogas bagged three exploration oil & gas
blocks in India and acquired 30% stakes in area A, Eastern
desert, Egypt. In 2008, Petrogas was awarded operations of small
fields in Oman.
Petrogas E&P is on the lookout for the acquisition of oil and
gas concessions with potential for exploration and development
as operator and/or partner with national and/or international
companies, to develop hydrocarbon resources. The ultimate goal
for Petrogas E&P is to reach 100,000 bpd from operations by
2010.
Petrogas Malih (Block 45 & 48)
Petrogas Malih was established in November 2007 to farm-in for a
50% interest into Blocks 45 and 48, Oman. As per the farm-in
terms, Petrogas will drill the first two wells on behalf of
Maersk (operator). Block 48 is along trend from Block 7 fields
and contains the Malih-1 oil and gas discovery made by PDO in
1984.
Petrogas Rima
(Rima satellite cluster of Small Fields)
Petrogas Rima was established at the beginning of 2008 to manage
and operate the Rima Satellite Cluster of Small Fields on behalf
of PDO. The area covers approximately 1500 sq km of PDO’s Block
6 and includes nine producing fields and nine unconnected
single-well discoveries. In 2010, production is 10,000 bopd. The
project is a service contract with PDO, where cost-recovery and
profit depends on oil production being maintained above a
baseline and a tendered production profile for the first five
years. Oman Oil Company SAOC is a 25% partner in the venture.
Petrogas E&P India Project Office
Petrogas E&P was awarded (under NELP VI) three exploration
blocks in India as a part of three consortia. In all the three
blocks, Petrogas has a 20% working interest and it is the
operator for the Block MB-OSN-2004/2, with GAIL (India) Limited,
Hindustan Petroleum Corporation Limited, Gujarat State Petroleum
Corporation and Indian Oil Corporation as non-operating
partners.
Egypt
Petrogas E&P recently acquired 30% equity in Area A block in
Egypt. The block comprises of two exploration concessions and
four development leases situated onshore along the western flank
of Gulf of Suez, Egypt. Oil Search is the operator of the block
with a 70% interest. The block comprises a number of mature
fields and exploration prospects with a production of some 5,500
bopd. It is a service contract with GPC, Egypt whereby the
contractor is paid a service fee against incremental production
above a designated baseline.
Click here
for the Petrogas Corporate Structure
For more information, visit
www.petrogasllc.com |
