MOG – Khazzan and Makarem gas fields*

39business

July 25 - 31, 2011

Project name: MOG – Khazzan and Makarem Gas Fields Development

Name of client: British PetroleumBudget: $700 millionMain contractor: EnerflexFacility type: Gas Field Development Status: EPC PMC: Not yet appointedlocation: Oman

Project statusOman’s Ministry of Oil and Gas plans to develop the

Khazzan and Makarem gas fields.In January 2011, construction of the compression sta-

tion was ongoing. During the fourth quarter of 2011, theappraisal phase is expected to be completed. Project scope

The gas produced from the Khazzan and Makaremfields will be used to meet rising gas demand from newindustries being built in Sohar, additional liquefied nat-ural gas (LNG) capacity at Sur and a string of enhanced

oil recovery (EOR) projects. Work includes: • drilling of new wells; • construction of a central processing facility; • installation of pipelines for the supply of feed gas; and •construction of a compression station and associatedfacilities.

Project structureOman’s Ministry of Oil and Gas is the project owner.

In mid-December 2006, BP was awarded the developercontract.

Schedules for this project September 2006 Appraisal and development

proposals submittedDecember 2006 PSA awarded to BPJuly 2007 More than 30 contractors invited to

submit prequalification applicationsLate August 2007 Feed ITB documents Q4 2007 Feed contract award2010 Production commencedQ4 2016 Expected completion

Company news

INTERNATIONAL oil field services company, Reservoir Group, has

announced the acquisition of the assets and business of Canada Tech

from IROC Energy Services Partnership (IROC).

The deal demonstrates that Reservoir Group remains on track toachieve its ambition of becoming the recognised specialist in the fieldsof drilling, completion and production and physical and digital data man-agement to the worldwide oil and gas industry.

Canada Tech specialises in the design, development and manufacture ofa wide line of tools and systems that measure pressure, temperature andother attributes in the downhole and surface environment of oil and gaswells. It was the only remaining technology services business operatedby IROC, with the other technology businesses being divested in 2009.

The acquisition will add another dimension to Reservoir Group’s WellMonitoring division, composed until now of the company Omega DataServices Ltd. Based in Aberdeen, Omega specialises in the manufactureand supply of ‘run-it-yourself’ downhole memory tools that reduce costsfor oil companies and service operators.

Reservoir Group chief executive officer, Pascal Bartette commented:“We welcome Canada Tech and its employees to the Reservoir Groupclub. Canada Tech has developed leading technical solutions for wellmonitoring which complement the first class solutions already availablefrom our existing group company, Omega Data Services.

“With increasingly complex well completions, understanding down-hole conditions is critical to maximising value from the reservoir. Thecombination of Reservoir Group’s international network and advancedmonitoring solutions offers tremendous opportunities to our well moni-toring business line.

“We are truly excited about the potential of the combined businesses,who have very little overlap but rather complementary services.”

Tom Alford, president and chief executive officer of IROC commented:“Reservoir Group is an emerging global market leader in downhole tools,technologies and associated sub-surface services.”

Reservoir Group buysmajor Canadian firm

PrOJECT BuDGET ($ uS) FACiliTy STATuS BG Group – Onshore Block 60 Concession 1,000,000,000 Oil and Gas Field PMC Circle Oil Oman – Block 49 and 52 Oilfield Development Unknown Oil and Gas Field EPC Harvest NR – Block 6 Oilfields Development 30,000,000 Oil Feasibility Study HEW Ministry- South Batinah Development Scheme 175,000,000 Water EPC Indago – West Bukha Offshore Gas Field Development 45,000,000 Gas Field Feed Kish Gas Field – Iran to Oman Pipeline Project 12,000,000,000 Gas Feasibility Study MOG – Khazzan and Makarem Gas Fields Development 700,000,000 Gas Field Development EPC MOG – Odin Energy – Tethys Oil – Block 15 Oilfield Development Unknown Oil Production EPC MOG – Offshore Block 41 Exploration Unknown Gas Exploration EPC MOG – Onshore Block 30 Exploration Unknown Gas Exploration EPC MOG – Onshore Oil Blocks 55 and 57 Development Unknown Oil and Gas Field Feasibility Study Mubadala/Oxy/Oman Oil – Habibah Block 62 Gas Field Development 500,000,000 Gas Field Development Construction Occidental – Onshore Oilfield Block 54 Development Unknown Oil and Gas Field Feasibility Study Octal – Integrated PET Resin and APET Complex Expansion 250,000,000 Polyethylene EPC OGC – Barka 3 and Sohar 2 IPPs (Natural Gas Supply Pipelines) Unknown Gas EPC ITB OGC – Gas Compressor Station at Nimr Field 50,000,000 Gas Network EPC OGC – Nimr Gas Network 200,000,000 Gas Network EPC ITB Oilex – Onshore Oilfield Block 56 Development 7,500,000 Oil Field Development Feed Oman Shipping – Very Large Crude Carriers (VLCCs) 1,500,000,000 Very Large Crude Carriers (VLCCs) Construction OMRC – Duqm Refining and Petrochemical Complex 13,000,000,000 Refinery Feed OOC – Musandam Pipeline and Processing Plant 500,000,000 Oil EPC ITB ORPC – New Bitumen Plant – Sohar Refinery 120,000,000 Bitumen Feed ORPC – Sohar Refinery Expansion 200,000,000 Refinery Feed ITB Oxy – Crude Oil Stabilisation Plant 80,000,000 Enhanced Oil Recovery (EOR) EPC ITB Oxy – Mubadala – OOC – Gas Deal 500,000,000 Gas Exploration EPC Oxy – Mukhaizna Field Enhanced Oil Recovery (EOR) Project (Overview) 2,000,000,000 Enhanced Oil Recovery (EOR) EPC PDO – Amal Oilfields Enhanced Oil Recovery (EOR) – Phase I Unknown Oil Field Development EPC PDO – Amal Oilfields Enhanced Oil Recovery (EOR) – Phase I (Off-Plot Facilities) Unknown Oil Field Development EPC PDO – Amal Oilfields Enhanced Oil Recovery (EOR) – Phase I (On-Plot Facilities) 100,000,000 Oil Field Development EPC PDO – Engineering Support Services Contract 30,000,000 Oil Production Feed PDO – Enhanced Oil Recovery – Al Noor and Sakhiya Fields Unknown Enhanced Oil Recovery (EOR) Feed ITB PDO – GE – Compressors Supply Contract 250,000,000 Gas Production EPC PDO – Harweel Cluster Phase 2 1,000,000,000 Gas Field EPC PDO – Harweel Enhanced Oil Recovery (EOR) Unknown Enhanced Oil Recovery (EOR) EPC PDO – Lekhwair Gas Field Development 250,000,000 Gas Field Development EPC ITB PDO – Marmul Central Development (Phase 3) 200,000,000 Oil Field Development EPC PDO – Mukhaizna Enhanced Oil Recovery – Thermal Injection 2,000,000,000 Enhanced Oil Recovery (EOR) Construction PDO – Nimr C Field Water Injection Project 70,000,000 Water Injection EPC PDO – Nimr Karim Oilfield Development Unknown Oil Production EPC PDO – North and South Fields Engineering and Maintenence Unknown Oil EPC PDO – Oman Gas Pipeline Unknown Gas Pipeline EPC PDO – Qarn Alam Enhanced Oil Recovery Project (EOR) 1,000,000,000 Enhanced Oil Recovery (EOR) EPC PDO – Qarn Alam Oil Pipeline Project 40,000,000 Oil EPC

PrOJeCT WATCH – OMAn*

BP has entered a production sharing deal with Oman for Khazzan and Makarem

*Sources: Data Media Systems