In a landmark ceremony in Muscat Monday Petroleum Development Oman (PDO) and MedcoEnergi International formally signed a first-of-its-kind service contract to develop a cluster of 18 small fields in the Nimr-Karim area of south Oman. The ceremony was held in the Oil and Gas Exhibition Centre under the patronage of Mohammed bin Nassir al-Khqsibi, Secretary General of the Ministry of National Economy and Deputy Chairman of the Board of Directors of PDO.
According to ONA, the agreement was signed by John Malcolm, PDO's Managing Director, and Hilmi Panigoro, CEO of MedcoEnergi International Tbk.
The Karim Small Fields Service Contract will give MedcoEnergi a 10-year mandate to accelerate the development of a group of PDO's "small fields" so PDO can devote more attention to its portfolio of large fields, which account for more than 80% of Oman's total oil production. Under the terms of the agreement, MedcoEnergi and its partners will develop a work programme and arrange for its budgeting and financing.
Malcolm welcomed the opportunity to work with MedcoEnergi. He said: "This novel service contract will enable PDO to boost production from these previously marginal oil fields without affecting the more critical delivery of major enhanced oil recovery projects underway in other areas of Oman operated by PDO."
In response, Hilmi Panigoro CEO of MedcoEnergi International Tbk said that he "looked forward to working hand in hand with PDO" and valued the signing of the contract as "an excellent opportunity for MedcoEnergi to expand its presence in the Middle East Oil and Gas market." He also added: "We will bring with us a wealth of experience and technical know-how to complement the skills already demonstrated by PDO. And we are certain that we can add value and deliver excellent results for these fields."
John Malcolm concluded "It is all about having different working relationships and different contracting methods that will allow PDO to get the focus on a job by working with others who also have the same focus."
As a part of the service contract agreement, Medco Energi has signed a joint operating agreement with Oman Oil Company taking 25% participation interest in the service contract.