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Oxy to Start Production From Oman Block

Source: Reuters 12/5/2005, Location: Middle East

A unit of U.S. oil firm Occidental Petroleum plans to start commercial production from Oman's onshore block 27 next July, an official statement said. Occidental of Oman will initially focus on Khamilah field with estimated reserves of 3.04 million barrels of oil, said the statement carried by the Information Ministry.

The development plan calls for drilling five new producer wells in addition to the existing two.

"This project derives its significance from the opportunity it will create to explore for and develop a cluster of small accumulations along the new production infrastructure," Oman Oil Ministry Undersecretary Nasser al-Jashmi said in the statement.

Occidental of Oman, the country's second biggest oil producer, holds a 65 percent interest in block 27 and Mitsui E&P Middle East holds the rest. It adjoins Occidental's block 9 concession, which now yields around 64,000 barrels per day of oil and 120 million standard cubic feet of gas per day.

Oman is a non-OPEC producer. The Gulf Arab state's oil output is decling, with total output falling to around 780,000 bpd in 2004 from around 820,000 bpd a year earlier.

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