Spearheading exploration in Dhofar and Musandam

Oman

Anil Chopra, founder and CEO of PetroTel Energy, talks to The Energy Year about the company’s exploration efforts in Musandam and Dhofar and its ongoing push to accelerate towards production.

PetroTel Energy is an oil and gas E&P firm and a provider of advisory, project management and drilling services through PetroTel group companies.

• While the majority of Oman’s legacy fields are shallow and accessible, the exploration frontiers that remain are mostly located in deep and complex formations that require specialised drilling techniques.
• Dhofar and Musandam have fields that have lain dormant for extended periods due to the technical and logistical difficulties presented by the terrain.
• In Musandam’s Block 17, an onshore-to-offshore well drilled by PetroTel achieved the longest length on record in Oman, reaching a measured depth of 7,549 metres.

Where has PetroTel been focusing its E&P efforts, and what results would you highlight?
We have focused on Blocks 39 and 67 in Dhofar and on Block 17 in Musandam. In Blocks 39 and 67, we have drilled 10 exploration wells, including two sidetracks. Before PetroTel was awarded this contract area, only eight exploration wells had been drilled in 88 years. We have brought US technology and submitted three field development plans.
While the terrain and tight formations will require sizable investment, similar fields are commercial in the US and provide 80-90% of production. PetroTel has a strong resolve to commercialise these assets, and we have built significant infrastructure in this area to reach our remote well locations.
Meanwhile, in Block 17, we have drilled five exploration wells, along with several side tracks. Two of the wells were drilled from onshore to offshore using extended reach drilling technology, with the first being the longest well ever drilled in Oman, reaching a measured depth of 24,767 feet [7,549 metres]. Future wells will be even longer, reaching approximately 27,000 feet [8,230 metres].
While most historic oil fields in Oman, such as Marmul, are shallow and accessible, the remaining frontiers are in highly complex, deep formations. Our Musandam acreage is located near an offshore field that has remained stranded since 2003 due to the technical difficulties of offshore drilling.

How much has the company invested towards these campaigns?
So far, across all our activities in Oman, we have invested more than USD 700 million, with around USD 490 million going into Block 17 and approximately USD 235 million in Blocks 39 and 67.

What are the logistical hurdles you face in Musandam?
Logistics in Musandam is very challenging indeed. Before we were awarded Block 17, no well had ever been drilled onshore in Musandam. No oilfield services companies are based there, and to transport equipment and supplies from Sohar, suppliers must cross four international borders. Customs checks can delay trucks by days, weeks or sometimes months. Many suppliers simply refuse to deliver there, and we must take over the logistics.
Regulations restrict the transport across land borders of the explosive and radioactive materials required for logging and perforations. To ensure compliance, we only use authorised maritime shippers, which involves navigating semi-annual delivery schedules and severely limits our operational flexibility. We have had to find expensive workarounds to address not being able to use explosives for such long wells.

Are you exploring new opportunities in Oman or abroad?
Our exploration opportunities are offshore Musandam, where we conducted a 2,000-kilometre 2D seismic survey but could not drill because of the challenges of the pandemic. We have also been studying the geology of all other blocks in Oman over the past 20 years, and our technology has identified some very exciting prospects overlooked by other operators. We are discussing farm-ins with a few of those companies, as they seek to tap into our financial, technological and operational expertise.
We are also in discussions to replicate our technology-led model in the US, Malaysia, India and Venezuela. The US government has provided very strong support to PetroTel in Oman and is encouraging us to drill in the US, especially to support the expanding LNG market. Our long-reach well technology is highly applicable to US shale and tight gas plays. 15,000-foot [4,572-metre] wells are standard in that segment, and our capabilities go beyond 25,000 feet [7,620 metres], so our opportunity is clear. We are also looking to diversify into other areas such as LNG plants and trading, and power plants for data centres.

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