Oman has awarded Halliburton contracts worth between $400–$500 million to help it shore up its rapidly dwindling production of crude oil.
Halliburton will assist state-controlled Petroleum Development Oman with oil well drilling, monitoring and production to help it raise its output to a targeted 800,000 barrels a day of crude by 2007.
Petroleum Development Oman, 34% owned by Royal Dutch/Shell Group, produces 95% of the country’s total current oil output of about 700,000 barrels a day. That 700,000 barrels per day is 11% lower than the average daily production of 785,000 bpd for the first four months of this year (earlier post), and off the peak production rate (961,000 bpd in 2001) by 27%.
This reinforces the hard-learned lessons about the dynamics of peaking in production—when decline begins after peaking, it soon accelerates. Even bringing in more enhanced oil recovery (EOR) technologies can’t push production back up to where it once was.