So far, Lean has helped us to generate US$1.2 billion through cost saving, revenue generation and cost avoidance and, this year alone, well over 7,000 ideas for continuous improvement have been submitted by our staff. Lean has galvanised all levels of the Company, delivering tangible benefits by freeing up resources and by empowering the organisation to constantly raise our performance bar.
What’s your proudest moment at PDO?
The list is simply too long and would cover hundreds of examples of best practice, individual and collective pride, commitment and determination beyond the call of duty. But, if I had to make one choice, it is to have had the privilege to see the smiling faces and expressions full of hope and opportunity for new trainees that are given a chance to deliver their best.
Renewable energy is a big focus for PDO. Can you update us on progress?
I’m delighted that, with our partners GlassPoint Solar, we have made superb progress on our Miraah facility, one of the largest solar plants in the world, which has already shown the scale of ambition in the area of renewable energy.
Delivering up to 1,021 MW when completed, this will use concentrated sunlight to generate 6,000 tons of emissions-free solar steam each day for use in thermal enhanced oil recovery. It will save 5.6 trillion British Thermal Units of natural gas each year, which can be diverted into other high-value sectors of the economy. The installation in southern Oman will also reduce CO2 emissions by more than 300,000 tons each year, the equivalent to taking 63,000 cars off the road.
I’m very pleased to say that steam has now been successfully delivered into our Amal West oilfield for the first time from Miraah, and we have also completed construction on the first block of the installation safely, on schedule and on budget.
We are currently actively implementing a number of other solar ventures in both our hydrocarbon and non-hydrocarbon portfolios. For example, we are almost two thirds of the way through a project at our Muscat headquarters to install more than 19,500 solar roof panels on car parking lots. When finished early next year, this will generate 9.5 million kWh annually to power key office buildings, with the electricity being diverted to the domestic grid during off-peak periods.
In our Ras Al Hamra development project, we have also implemented solar lighting and heating and grey water recycling, to name but a few of the environmentally friendly initiatives which characterise the scheme.
We will soon be issuing an invitation to tender (ITT) for up to five 20 MW solar projects in our concession, mainly scattered in the area between Bahja and Marmul. The aim of the project is to save gas through the daytime generation of power while learning how best to support and service photovoltaic (PV) solar facilities in our operating environment.
The overall venture is expected to introduce an equivalent fuel saving of 70.5 million cubic metres of gas per annum (US$17 million a year), reducing our dependency on conventional gas turbines. It will also reduce overall CO2 emissions by around 8,550 tons annually. Along with the gas saving and the environmental benefits, the enterprise will be a landmark in the country as it will be the biggest solar PV initiative to date and bolster our position and operating experience in renewable energy.
What is the outlook for PDO’s natural gas production for 2017 and 2018?
We are optimistic about the outlook and are continually working to meet the gas demand for Oman and our customers. As new production from projects like BP’s Khazzan ramps up, we will increasingly shift to a swing producer. Overall, we see a great opportunity to monetise the surplus gas over the next five or more years, further supported by new exploration finds, through gas solar swaps that could truly kick-off the solar industry in Oman.
Meanwhile, our first mega project at Rabab Harweel, the most complex and largest in our history, is set for first gas export next year. The complex comprises the installation of sour gas processing facilities and associated gathering, injection systems and export pipelines. It paves the way for the export of one trillion cubic feet of non-associated shale gas, as well as 240 million barrels of oil and 100 million barrels of condensate.
