Oman

Exploration Program

In 2008 CC Energy through its SPV CC Energy Development S.A.L.(CCED)  acquired two onshore blocks 3 & 4 (Afar & Ghunaim) on the eastern coast of Oman with a combined surface area of 37,000 km². These blocks had been previously held by numerous international oil companies who had drilled a total of 27 exploration wells and shot 35,000 km of 2D seismic giving CC Energy’s veteran technical team a rich data set to work from.

In 2009, CCED began its exploration program and drilled two back-to-back discoveries identifying commercial fields in the Farha South and Saiwan East areas. This was the first time light oil had been discovered in the Khufai reservoir in Oman and the first time oil had been discovered in the Barik in these blocks.

In light of CCED’s exploration program’s success, CCED acquired 1,142 km² high-resolution 3D seismic survey over Saiwan East Fields (400 km²) and Farha South Fields (742 km²) to enable fast track development. Since then CCED has acquired in excess of 10,000 km² of 3D Seismic on the blocks and drilled over 300 exploration, appraisal and development wells making numerous new discoveries in the Farha, Shahd, Ulfa, Erfan and Samha areas.

CCED’s field development plan was designed to monetize blocks 3 & 4’s light oil discoveries in an exceptionally short period of time allowing CCED to better understand the reservoirs for their optimal development whilst also enabling CCED to fund the fields continued development from operational cash flows.

Field Development Plan

• Phase I of the project entailed an Early Production Facility (EPF) at Farha South as well as a temporary well test unit at Saiwan East allowing us to produce and truck oil from both fields. Production commenced at 500 BOPD during the second half of 2010 and  increased to 14,000 BOPD by mid-2012
• Phase II entailed the commencement of full-scale production through the installation of Permanent Production Facilities (PPF) and a pipeline to PDO’s Qarn Alam facilities from which it enters the main oil line for onward export. Phase II also included the further installation of EPFs at the Shahd area to produce new discoveries
• Phase III included expansion of the Farha South Permanent Facilities, the installation of new Permanent Production Facilities in the Shahd area to replace the leased early production facilities, and an EPF at the Ulfa field which also handles the Samha field

CCED continues to roll out its multi-year multi-phase field development plan and is producing circa 34,000 BOPD, making it the fourth largest upstream E&P operator in Oman in terms of production volumes.