Northern Oman Gas project inaugurated

Published March 10th, 2005 - 01:00 GMT

Sayyid Haitham bin Tariq al-Said, Oman's Minister of Heritage and Culture presided over the inauguration of Northern Oman gas project in the wilayat of Ibri in the Dhahirah region Wednesday.  Present at the ceremony were Dr. Mohammed bin Hamad al-Rumhi, Minister of Oil and Gas, other ministers, undersecretaries, Sheikh Abdullah bin Mustahail Shimas, Wali of Ibri, members of the State Council, heads and directors of government establishments and departments in Ibri, sheikhs and dignitaries and citizens.


Nassir bin Khamis al-Gashmi, Oil and Gas Ministry undersecretary gave an opening address, in which he said the project to produce natural gas from Al-Safa field in the wilayat of Ibri “Northern Oman Gas Project” is a joint venture between Occidental Oman inc. and Mitshui company. 


He said the project, the biggest of its kind to be implemented by the private sector represents an important step in implementing the Sultanate’s strategy to reduce the quantity of burnt natural gas and utilize it as source of energy. 


According to ONA, he added the project enhances existing relations between the Sultanate and other GCC states in general and with the UAE in particular as the produced natural gas will be exported to Al-A’in city and then to Al-Fujairah Emirate to be used as fuel for power and desalination plants. 


Al-Gashmi said the project aims to develop reserves of associated and non-associated gas in the concession block No.(9) whose stock is estimated at more than 400 billion cupic feet. Estimates of associated liquids are 1.9 million barrels. The project includes developing four non-associated gas fields, designing and constructing gas accumulating and processing utilities. The produced gas will be transported from the production site to the delivery area through a pipeline. 


The project was implemented at a total cost of US $ 120 million and as per the sale and purchase agreement signed between the Sultanate’s government and the implementing company on April 29th 2003.  He added the implementing company will provide the government with 120 cupic feet of gas daily, saying that the company succeeded to complete the project four month ahead of the set date.


The General Manager of Occidental Oman said North Oman Gas joint venture aims to develop associated and non-associated gas reserves in block 9 which has an estimated 400 billion cubic feet of gas stock and around 1.9 million barrels of associated liquids. 


He said a gas sale and purchase agreement was signed on 29th April 2003 with the Sultanate’s government. It provides for the sale of 120 million cubic feet of natural gas in average per day and sets 28th July 2004 as the date for first delivery. He said the gas delivery began in March 2004 and before 4 months from the set date.  Occidental Oman owns 65% of the project and Mitshui 35%.    


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