Bukha gas/condensate field off Oman in the Strait of Hormuz could be on stream by the end of 1991, says field operator International Petroleum Corp., Dubai.
Gas production might be used as feedstock for the world's first floating methanol plant, which is entering final planning stages. Or it could be sold into the gas distribution grid of the nearby United Arab Emirates and used in the northern emirates.
IPC said because the methanol plant could not be ready to handle gas until at least 1 year after Bukha start-up, it is likely the gas will be sold in the U.A.E.
Onshore, Occidental of Oman Inc. plans further development of Safah oil field in Northeast Oman this year.
BUKHA PROJECT
IPC proposes a $50-60 million project to connect three existing Bukha wells through a wellhead platform to an onshore gas processing plant in nearby Ras al Khaimah, U.A.E. The plant was built to serve Saleh offshore field, previously operated by IPC.
The first phase of the Bukha project is to produce 75 MMcfd of gas and 9,000 b/d of condensate.
Highlands Petrochemicals Ltd. and Ocean Phoenix, which have a 10 year agreement with the Omani government covering 224 bcf of gas as feedstock for the methanol plant, said the floating unit could be ready for processing in early 1993.
The combine recently received a turnkey bid from M.W. Kellogg for a custom built barge and a 2,200 metric ton/day methanol plant. Negotiations on finance are under way.
The contract with the Omani government gives Highlands and Ocean Phoenix the option to moor the unit off Sohar in the Indian Ocean and take gas from Oman's main natural gas pipeline network.
IPC, which operates the Bukha concession in partnership with Wintershall Oman BV, said the Ras al Khaimah processing facilities are handling about 20 MMcfd from Saleh field. Saleh will be almost depleted before Bukha goes on stream. The plant might be expanded to handle 95 MMcfd of gas.
Bukha is to be connected to the plant by an 18.6 mile, 16 in., two phase flow pipeline. Condensate will be exported through a line that runs from the plant to an offshore loading buoy.
Bukha, IPC said, is likely to be the first of several development projects on the permit. The acreage holds a number of prospects, including the West Bukha-Henjam structure that extends into Iranian waters.
SAFAH FIELD
Oxy's Safah field program includes plans to drill another 30 development wells, along with start-up of gas injection.
Safah, a 65-35 joint venture with Gulf Oman, a Chevron Corp. unit, produced an average 19,100 b/d last year. Production this year averages about 22,000 b/d.
In addition to the development drilling program, Oxy is drilling a 17,000 ft well in the Mountain Front area of the 11,793 sq km Suneinah permit, which also holds Safah field. The 1 Milhah well is at 13,700 ft.
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