The monthly newsletter for Petroleum Development Oman staff and its contractors

Issue - 436 June 2015

PDO Day02 Staff In The Spotlight04 Well Placed12 Earth-Shattering Discovery

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RamadanMubarak

First WordDear Colleagues,

Welcome to the first edition of a new look, redesigned Al Fahal, which we hope you will find enjoyable to read.

Its a bumper edition which also has a special supplement marking the second PDO Day, held in honour of His Majestys historic visit to our BMF headquarters. The event itself was a wonderful occasion which saw just some of our many famous and distinguished alumni return as special guests, as well as the launch of a new book, The Excellence Academy, charting the success stories of some of those who laid the foundations of their career at PDO.

The theme for the day was, of course, Lean, which is helping to transform the Company into a sharper, smarter organisation and there were some great examples on show of how it is driving efficiencies throughout the business, something which is especially important in the current volatile oil price environment.

This magazine has two more pages to give you even more content to read, including an occasional new column from the Young Professional Network, this time describing its new Big Brother/Big Sister mentoring scheme for new joiners a great example of the caring, friendly, helpful spirit which is one of PDOs hallmarks. This was also demonstrated by the launch of the Baader volunteer scheme which has paved the way for our staff to share their expertise and time with eight non-governmental organisations.

Al Fahal carries an important interview with the new Well Engineering Director Mohammed Al Rashdi, who speaks of his plans and thoughts on the challenges and opportunities ahead, with a strong focus on health, safety and environment, Lean, In-Country Value and talent development.

We have seen some marked progress on the project front recently, and the signing of a very significant contract to advance the Karim Small Fields and the start of the commissioning of Marmul Polymer Phase II are both covered in depth.

Finally, as you know, the face of our Coastal operation is changing to ensure staff are able to work in modern and comfortable offices and these pages feature just one more example of this: the opening of the new Bait Al Bushra complex, Omans largest light gauge steel office which was built in just nine months a tremendous achievement by our Corporate Real Estate Department and contractors.

Regards,

Raoul RestucciManaging Director

Initially, please contact the editor. Submission of written articles without prior discussion is not encouraged to avoid disappointment in cases where a story is not suitable for Al Fahal.

IF YOU HAVE A STORY

PHOTOGRAPHY

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Contents01 - Helping The Community02 - Staff In The Spotlight03 - Water Boost For Fahud 03 - Tech Talk 04 - Well Placed05 - Marmul Polymer Phase II On

Stream05 - The YPN Big Brother Big

Sister Scheme 06 - US$600 Million Karim Deal06 - Zumba Zeal07 - One in a Million!

07 - Outward and Upward08 - A Model Of Innovation09 - Best of All09 - PDO Airports Re-Certified10 - Cyber Crime Awareness11 - Leaders In Their Field11 - PDO Backs Community

Education Drive12 - Earth-Shattering

Discovery13 - LGS Building Breaks New

Ground

Al Fahal | June 2015 1

Within 30 minutes of a company-wide message announcing the scheme, 250 employees had stepped forward to participate.The first 80 have already been assigned to eight Omani non-governmental organisations (NGOs).The initiative, called Baader (which in Arabic means take the initiative, begin a good deed), enables staff to help by devoting their time and expertise for free in areas such as IT, HR and administration, PR and marketing, communications, archiving, finance, accounting, training, translation and event management.External Affairs Director Abdul-Amir Al Ajmi paid tribute to Managing Director Raoul Restucci for suggesting the idea, and said: PDO has a vast pool of skill and capability in many disciplines and we believe we should put some of this at the countrys disposal in line with our obligations as a good corporate citizen.This is part of PDOs continuous support for creating a better world. All of us need support and help. We live in a collaborative society.

The NGOs involved in the scheme are the Oman Cancer Association (OCA), Dar Al Atta, Early Intervention Association, Oman Association for Disabled Children, Down Syndrome Association, Oman Association for the Disabled, Environment Society of Oman (ESO), and Al Noor Association for the Blind.

The selected volunteers will be granted up to seven working days (intermittent or continuous) off work per calendar year to engage in helping organisations in need, with the agreement of their line managers. The NGOs will provide

PDO People

Helping The CommunityA new initiative has been launched enabling staff to volunteer to help community groups

a monthly progress report on volunteer participation and the support that has been provided.

Pipeline Infrastructure Project Engineer Said Bait Shaq, who will be helping the Early Intervention Association, said: It is a humanitarian thing to help and I just wanted to help.

EcOman Centre Curator Said Al Saqri, who is volunteering for ESO, said: This initiative is a platform to bring all the volunteers together. There is so much experience in so many different fields in PDO to support these NGOs. At the end of the day, they have a little voice and they need help.

Yuthar Al Rawahi, President of OCA, said the group needed help across a range of areas including social media, marketing, auditing and assistance in its Dar Al Hanan initiative, which offers a home to child cancer patients and their families while they are undergoing treatment in Muscat.

She said: I am thrilled that PDO is taking this up.

Fatma Al Barwani, Treasurer of the Down Syndrome Association, said the groups aim was to support the development of children through various ways including speech, physiotherapy, sign language and teaching similar to classroom methods.She added: As we are in the initial stages of setting up a fully operational centre, this volunteer initiative will work greatly in having external individuals such as those who dont have children with Down Syndrome or those have not been previously involved with the association - bring new ideas on how we can

develop and move forward with our vision. The volunteers also have varied experiences and skills in different areas like IT, strategy implementation and so on, and this can assist us in revising our website and planning any new developments we strive to set up.

And Sultan Al Sahabi, Vice President of the Al Noor board, said: PDO is always the first in taking initiatives like this to help and support our aspirations.

Learning and Development Centre Manager Hamed Al Hadhrami said: PDOs staff initiative to participate voluntarily to support the NGOs is an indication of their eagerness to improve the lives of those who need support. It is also an opportunity to share their expertise and knowledge with other organisations. This initiative is an excellent example of the work environment in PDO where both Omanis and non-Omanis work hand-in-hand to build capabilities and improve services outside PDO.

Raoul said: I am delighted we have lift-off on this key initiative that will raise pride and reputation for PDO and create so much value for everyone we support.

Proud volunteers meet NGO leaders

Al Fahal |June 2015 2

PDO People

Staff In The SpotlightSteve Holyoak (Production Seismologist)

If you know of a good subject for Staff In the Spotlight, please contact editors@pdo.co.om

Production Seismologist Steve Holyoak has become a world champion after an incredible feat of non-stop endurance running.

Steve, 50, captained the Great Britain mens team to a gold medal in the Ultra Running World Championships in Turin, Italy, where the top three athletes from each countrys team run as far as they can in 24 hours.

Team GB recorded a combined total of 770.78km, with Steve himself clocking up an astonishing 252.8km of running around a 2km track, and finishing 11th out of 302 international starters from 42 countries. The achievement was the most successful Team GB performance in the event of all time.

Steve joined the Amal Thermal Cluster team last August and is primarily involved in reservoir characterisation/surveillance and well delivery. However, he successfully juggles his demanding job by running around 36km a day.

In preparation for the world championships, he was rising at 5.00am every day, completing an 18km training run in time for work at around 7am, and then finishing the day with another 18km run in the evening.

Here, he talks to Al Fahal about his remarkable show of stamina and dedication.

Describe your running regime

Up until my mid 40s Id been competing in races up to marathon distance. However, it was during my previous posting in Norway that I became more serious about so-called ultra-distance running. In Oman, when peaking for the World Championships, I was running around 36 km per day. The coastal roads and paths between PDO and the embassies provide an excellent training area, but after Norway it was a bit of a challenge to get used to the heat. On Fridays I would typically be doing a run of 40 50km, for example, from Ras Al Hamra down to the airport and back, making a weekly total of up to 220km. I always have one day off running per week usually Saturday.

How does running help with work as a production seismologist?

Its a very interesting role, and I work with a great bunch of friendly, competent and dedicated people. The work can sometimes be quite intense though, and it also entails sitting at my desk using a PC for large parts of the day. Running is therefore a great counterbalance, both physically and mentally.

What was it like competing at the ultra-running event?

Ive competed for Team GB in two previous world championships which have been very rewarding. This time around I was honoured to be selected as Team GB captain, and, with the work we have put into building experience and injecting new talent, felt that if everything went right on the day we would be serious contenders for at least European bronze (the World and European championships are held in parallel).

On the world stage we are competing against extremely strong opposition from the likes of Japan, USA and Russia so we tend to go into the events with a balance between ambition and realism. When it dawned on us towards the closing stages that we were in with a very real chance of not just European gold but also World gold it was initially a feeling of disbelief. We had to keep level heads and managed to extend our lead to the point where it was

unassailable. However, it only really sank in when we stood at the podium in front of a cheering audience with our national anthem being played. That was a big moment for the team, not just the runners but also the critical management, physiotherapy and support elements that make it all possible.

Have you won any other international running events?

As an individual Ive won a few marathons, ultra-marathons and trail races (including a recent 50km event at Wadi Bih in Musandam). However, nothing anywhere near the level of the world championships, either on a team or individual basis. This meant that winning the team gold medals had an even greater impact for me.

What other hobbies do you have?

Im also a scuba diving instructor and really enjoy cross-country mountain biking. Oman is, of course, very well suited to both of these activities unfortunately they tend to take a back seat if I have a big running event coming up. Im looking forward to scaling down the running for a little while and indulging some of my other hobbies, and also spending a bit more time with my long-suffering (but very supportive) wife. I may even get some of the overdue household chores ticked off the list!

Steve pounds the track on the way to gold

Al Fahal | June 2015 3

A reverse osmosis (RO) plant for potable water has been commissioned at Fahud.

The facility was previously used as part of the steam plant and is designed to produce a total of 2,600m3 a day.

The plant is producing potable water which will then be used for drinking, cooking, washing and for drilling operations.

Contract Holder Said Al Riyami expressed his happiness at the new solution to meet the demand for water in the North. The plant will support not only the Fahud community but other locations, including the Yibal GGL and Kazzan projects, rigs, frac units and other upcoming projects such as Khulud and Yibal Khuff.

The Royal Oman Police new training camp at Fahud will also benefit from this operation, including the future camp expansion which is expected to cater for around 1,000 people.

The RO system works by pumping raw feed water from bore wells (from a depth of around 200m) to storage tanks and then to a

Water Boost For FahudPDO Projects

process unit where a pressurised membrane produces relatively pure water after filtering out substances such as oils, pyrogens and salts.

North Operations Manager Dr Khamis Al Busaidi said: The plant will provide a big relief for the entire North and Fahud will act as a hub of water distribution point to cover the

PDOs operating costs have risen continuously for the past 10 years, and are forecast to continue increasing. One of the major contributors to this rise is road maintenance which is costing the Company around US$10 million per year.

The conventional method of re-sheeting a graded road surface by replacing it with new

shortage and will support our colleagues in the drilling and other associated project teams.

Fahud Delivery Team Leader Abdullah Al Kindy commented: We feel proud of this achievement for the commissioning of the 2,600m3/day plant which is a big relief for the water issue facing the entire North.

material and compacting it is costly and does not produce roads of acceptable quality, and the surface tends to deteriorate rapidly with time.

This deterioration causes a significant increase in journey time and in the wear-and-tear cost to the vehicles using the road. Some critical routes in PDO, such as the 65km Bahja-Zauliyah link, require re-sheeting three or four times a year on certain sections.

PDO has embarked on a mission to upgrade its graded road network within the oil fields by employing a new technology to reduce cost and provide an alternative to road maintenance that is of much higher quality. This new method stabilises and imparts enhanced structural properties to the road base using foamed bitumen and cement by using highly specialised equipment developed

Tech Talk

and manufactured by the Wirtgen Group of Germany. The stabilised layer is protected by a wearing course of a single or double layer of surface dressing to create a paved surface with a much longer lifespan than graded roads.

This technology has a relatively long history and is well proven worldwide. It has been employed in two pilot studies in PDO. The first was implemented in March 2013 on 52 km of stabilised and surfaced dressed road between Bahja and Zauliya and the second on 19 km of stabilised road surfaced with asphalt from Bahja to Suwaihat.

The pilot was successfully completed in PDO in March 2014 and should achieve up to a 100% cost saving after the third year. In addition, there are other indirect savings which have also contributed to the success of this technology. For example, driving time has been cut by 50% given the improved road condition.

Due to the major success of the pilot, PDO is in the process of deploying this technology across its oilfields as it has the potential to replace asphalting for PDOs most critical and heavily used roads. Deployment will not only achieve significant savings in the operating cost, but will also support the organisation in delivering its core business efficiently, given the significant reduction in driving time and enhanced road safety standards. Furthermore, it will open new job opportunities for Omanis.

Al Fahal |June 2015 4

PDO People

Mohammed Al Rashdi was recently appointed as Well Engineering and Logistics Director. Mohammed joined PDO in 1991 as an assistant driller. After steadily working his way up the ranks, he become Operations Team Leader for deep drilling activities before being promoted to Wells Function Discipline Leader, until 2012. He then moved to become Well Engineering Contract Manager, a position he held until the end of last year, before he took over as head of the Well Operations Department.

What is your first impression of the UWD role?In terms of programme delivery we have seen huge growth year on year. The diverse portfolio ranges from frontier exploration wells to factory drilling activities and from in-sourcing project management to commercial, business planning and logistics. There is much excitement all around and my main challenge is to keep the momentum going and to continue improving business performance while safeguarding HSE.

Can you describe your average working day?I am an early starter. Usually I start my day after Al Fajer prayers around 5:30am. The first thing I do when I arrive at my office is to go through my emails and operation summary until around 7:15am. After that I drink a cup of tea and then meet different teams in their offices to be close to the action. At 8am I return to my office and follow my calendar for that particular day. Around 4pm I catch up with my emails and check my calendar for the next day.What are the immediate challenges?The future is going to be very different, because the dynamics of the business are changing. We will see a larger shift in our portfolio from conventional wells towards more demanding projects, such as enhanced oil recovery, deeper, higher

pressure, higher temperature (HPHT), tight oil and unconventional gas with high hydrogen sulphide content.Due to existing ageing assets we also expect an increase in complexity and in the work volume going forward, particularly in the arena of completion and well intervention. This requires higher material specifications and different skill sets. As an operator, we are now in the high-cost business so we cannot continue as if it were business as usual. We need a step change.The directorate has created competition by bringing in new Omani start-ups and developing local companies. This presents a high HSE exposure which is also magnified by the high growth in our activities (19% additional units during 2014/2015). In addition, we are in the process of in-sourcing our own hoists and rigs, and this requires a strong focus and continuous management attention.

What are the opportunities?Any organisation is as good as its people. The talents we have in wells, the people commitments and their determination to overcome any challenges and be the best in class, are our biggest asset.Therefore, talent development is the main focus area. The young people joining are committed and enthusiastic. We just have to equip them with the required competencies to be ready for

upcoming challenges. Applications of the latest technologies, various efficiency drivers and tools are also critical to our business to ensure sustained performance. Lean implementation is also a huge opportunity to remove waste and be more efficient.

How do you intend to address the above?On HSE, we will maintain the focus on the five must-win areas: Hands and Fingers, DROPS, road safety, lifting and slinging and Process Safety. Also, we will continue implementing ongoing HSE initiatives such as Behaviour Based Safety (BBS) and the Risk Champion Programme. Additionally, we continually evaluate and map out the areas with high HSE exposure through adopting the risk-based allocation of additional resources to coach and support.In terms of strengthening our capability development, we are providing our staff with the required technical and leadership exposures. We continually look for short- and longer-term technical assignment opportunities. Refining our integrated development programme and field coaching for young professionals is key to secure our future.On the other fronts, focusing on continuous performance benchmarking, Lean implementation, maturing Knowledge & Information Management and capitalising on our previous experience are also key to generate more value and make a step change.

What is your view of the present state of PDO?PDO is the backbone of the countrys economy. Due to business dynamics, we currently face a formidable set of challenges, such as the execution of EOR projects, the expansion of gas production and the implementation of new ways of working. However, PDO, because of its people, will remain at the forefront of the regions oil and gas business.

What is your advice for young engineers?

In UWD we have an exciting long-term portfolio with diverse challenges. We almost do everything: engineering, project management, contracting, logistics and operations. We are constantly testing and adopting new technology and exploring new ways of working. This is an incredibly exciting environment.

My advice to young engineers is to see challenges as opportunities for improvement, grasp opportunities to learn, be careful not to be deterred by frustrated or spiritless people and focus on giving your best to serve Oman proudly.

PDO is the backbone of the countrys economy

Well Placed

Al Fahal | June 2015 5

PDO Projects

Marmul Polymer Phase II On Stream

Further progress has been made on PDOs chemical enhanced oil recovery journey with the commissioning of 19 pumps as part of the planned expansion of the Marmul polymer plant. The additional pumps augment the existing 26 that were introduced in 2010 as part of the Phase I deployment. Polymer injection in the Marmul field goes back to the mid-1980s. The first pilot, started in 1985 in the south eastern part of the field with a 200m well spacing, was followed by a second trial in 1989 with a spacing of 600m.

Both pilots achieved technical success, but it was decided that field-wide implementation would be commercially unviable at that time. The process was reintroduced in 2010 through the conversion of 26 water injectors to polymer. That deployment ushered in the start of the chemical flooding of Al Khlata reservoir in the Marmul field that has continued to the present. However, to facilitate polymer injection, dedicated polymer and water treatment plants had to be constructed.

Since 2010, incremental oil realised from this project averaged 950m3/d or 19% of the total production from Al Khlata reservoir on a daily basis. The additional 19 pumps, part of Phase II, will increase that incremental oil gain by another 300 m3/d by the end of 2016. Hilal Al Busaidi, the South Petroleum Engineering Manager, said: This is an important milestone for the Oil South Directorate in general and the Marmul cluster in particular.Phase II commissioning will contribute to the Souths future production growth which has averaged 5% since 2007.

Hisham Al Siyabi, Marmul-RTQ Cluster Leader, said: The deployment of these 19 pumps utilises the full capacity of the plant for polymer injection and will enable us to expand polymer flooding to a bigger portion of the field through 45 dedicated injectors.

Jasim Al Ajmi, Marmul/Chemical Engineering Team Leader, added: To achieve this milestone, we had to overcome a number of challenges. A key success factor was the teamwork environment during the execution phase of the project between the project team, operations, and contactors.

The Phase II deployment is not the end of the journey. Phase lll is currently being progressed, and this will involve infill drilling of the field at a closer well spacing. Additionally, polymer flooding will be deployed at the full field scale by rotating the polymer injection capacity over time.

The YPN Big Brother Big Sister Scheme Abdullah Al Mamari, YPN Vice PresidentOne of the major activities on the Young Professional Networks plate this year is the Big Brother/Big Sister (BB/BS) scheme. With the initiative being conceptualised by young professionals themselves, the scheme is designed to guide new joiners through PDOs systems, in addition to directing them on how to develop their technical and soft skills. Being close to a vast number of YPs and new graduate recruits, the YPN steering committee understood the struggle faced by people coming from different academic backgrounds to start their career and settle in a professional working environment like PDO. It was decided that a system which did not focus on technical coaching and mainly addressed this struggle could be a helpful and valuable initiative.We believe that the BB/BS scheme will definitely compliment the role of a formal coach rather than eliminating it entirely. There are benefits on both sides. The formal coach will be relieved from the high load of providing day-to-day assistance while the Big Brother or Sister will learn and acquire the required skill set of coaching. The first trial of the scheme has already been launched. Big Brothers and Big Sisters have been selected across different directorates, a structured plan was communicated and a carefully designed checklist has been provided and explained as a guideline for them to follow. Additionally, a team has been formed to assist Big Brothers and Big Sisters, obtain regular feedback and follow up on progress. Finally, it is worth noting, that while the scheme is still evolving, improvements will be made as it matures by obtaining feedback from the participants.The success of the scheme will be measured by evaluating the continuous feedback and once fully launched, key performance indicators will also be identified to clearly identify success. Please visit our Young Professional Network website on the PDO intranet for more information and updates on the scheme.

Phase ll commissioning will contribute to the Souths future production growth

Al Fahal |June 2015 6

PDO Projects

US$600 Million Karim Deal

PDO has signed a US$600 million contract with the Indonesian oil and gas company MedcoEnergi to continue developing the Karim Small Fields (KSF) project in southern Oman.

The deal runs until 2040 and builds on an existing contract from 2006.

PDO has been working in partnership with MedcoEnergi on KSF to maximise production from a series of 18 depleting small and marginal fields. The project throws up a series of tough challenges, not least the viscosity of the oil and the high oil-water ratio in the reservoirs. However, the combined efforts have so far generated revenues of close to US$4 billion for the Sultanate.

The sum of US$600 million covers the first five years from 2016-2021 when it is expected around 100 new wells will be drilled - but should then increase by US$80-130 million per year depending on variables such as the production target and budget.

Managing Director Raoul Restucci said: This signing represents a new way of working between PDO and MedcoEnergi, with our current agreement being amended to create a true business alliance. What we are doing is leveraging the fundamental strengths of both parties and moving towards a deeper, stronger partnership to deliver long-term value for PDO and Oman.

The purpose of this contract is to maximise, in a safe and sustainable way, production from the KSF cluster, using the resources of MedcoEnergi.

In the current tough volatile oil price environment, MedcoEnergi has shown itself to be fully committed to continue delivering value in an efficient way with the guarantee of significant investment, further support for In-Country Value (ICV) and without compromising on our overarching priority of safety.

PDO hopes that the renewal of the partnership will help to increase KSF production from the current 17,500 barrels of oil per day to at least 20,000 bpd over the next few years through secondary recovery, such as water flood, full field application of cyclic steam, enhanced oil recovery, re-instatement of unconnected fields and more exploration and appraisal.

Raoul paid tribute to the way MedcoEnergi had embedded ICV in its operation to give job and training opportunities to Omanis. There are currently 160 Omanis working at KSF out of a total workforce of 188 an Omanisation rate of 85%. A number of Omanis have also been posted to the Indonesian capital of Jakharta to gain the experience of working to international standards and training as drilling engineers and subsurface and liquefied natural gas (LNG) specialists.

In addition, MedcoEnergi has contributed significantly to the development of Local Community Contractors (LCCs), spending over US$25 million to date with them. It is currently working with a total of 23 LCCs, providing an opportunity to grow and gain valuable experience in the oil and gas business.

The extension of the production sharing service agreement contract was signed at an official ceremony at Mina Al Fahal, under the auspices of His Excellency Dr Mohammed

bin Hamad Al Rumhy, Minister of Oil and Gas and Chairman of the PDO Board of Directors. The event was attended by His Excellency Sukanto, Ambassador of the Republic of Indonesia in Oman, His Excellency Dr Alawi Shihab, Advisor to MedcoEnergi International and special Middle East and North Africa envoy for Indonesia, and eminent members of the Indonesian Parliament, as well as leading members of the MedcoEnergi executive team and the companys partners.

MedcoEnergi Chief Executive Officer Mr Lukman Mahfoedz said: We are very pleased to have the KSF contract amended and restated with a lot of improved terms. We believe that this additional 25-year contract period demonstrates our success in the last nine years of diligent and successful effort in doubling the production.

We are looking forward to working together with the Government of Oman and PDO in the next 25 years with the objective of increasing production, executing exploration programmes successfully and maintaining safe operations.

Zumba ZealThe Ras Al Hamra Fitness Club has held the first Zumbathon in Oman at the Sports Centre.

The event was led by licensed Zumba instructors and supported by the RAH Fitness Committee.

It was inaugurated by Ibtisam Al Riyami, People and Change Director and a Change4Life representative and was attended by guests and members.

The event ran for over three hours as part of the Change4Life campaign which helps to promote health awareness and wellbeing for the community. Funds raised by the campaign go towards the purchase of subsidised testing strips for diabetics who come from low-income backgrounds.

Ibtisam Al Riyami

Al Fahal | June 2015 7

The Muscat complex, consisting of the Oil and Gas Exhibition Centre, Planetarium and EcOman Centre, offers information and education on the hydrocarbon sector, the environment and astronomy.As well as giving guided tours and shows to families, students and tourists, it also provides a range of other services including workshops, lectures and exhibitions.A total of 425,000 people have visited the Oil and Gas Exhibition Centre since it opened in 1979, with 280,000 going to the Planetarium since 2000 and 32,000 to the EcOman since 2011. In addition, a further 270,000 have used the facilities for meetings, conferences and events. External Affairs Director Abdul-Amir Al Ajmi said: We are delighted that so many people have visited the Knowledge World over the years to learn more about oil and gas exploration and production and other important PDO focus areas such as environmental stewardship and sustainable energy.Both Omanis and international travellers to the Sultanate have enjoyed their time with us

PDO Places

PDO has renewed its partnership with Outward Bound Oman (OBO) to provide support to the organisation in its mission to equip Omani youths with practical life skills.

The Company agreed a three-year Memorandum of Understanding (MoU), which was signed by the His Highness Sayyid Faisal Bin Turki Al Said, Patron of Outward Bound and Managing Director Raoul Restucci.

Under the terms of the agreement PDO will provide funding and volunteers for OBO activities.

Outward and Upward

Over 200 students from across the Sultanate benefitted from adventure trips into the desert or the Omani Jebels in the first three years of the partnership. These expeditions enabled them to experience the countrys beautiful landscape whilst developing skills such as communication, leadership, teamwork and discourse.

The trips stretch the youngsters both mentally and physically, and they are put in situations where they can develop an appreciation of risk, reward and responsibility for themselves, others and the environment.

and we noticed a marked increase in foreign visitor numbers after the Ministry of Tourism kindly began publicising the attraction on its website.The Knowledge World offers a fascinating experience to visitors, as well as excellent facilities for exhibitions, conferences and events. We aim to offer a warm welcome to our guests and the staff are pleased to see so many schoolchildren 70% of our visitors come through our doors who are eager to learn more about earth science, ecology and the solar system.We have a number of appealing interactive models and exhibits, which explain things in a clear, interesting and fun way and our Planetarium offers visitors a fantastic multi-media experience of the wonders of the universe.The Oil and Gas Exhibition Centre, the Planetarium and EcOman Centre were donated

by PDO as Gifts to the Nation, something which is done to mark every five years of His Majestys reign. Last year, PDO announced that the latest Gift would be a public aquarium in Seeb to commemorate the 45th anniversary.

One In A Million!PDOs Knowledge World attraction has received more than one million visitors from home and abroad

The renewal of the partnership underlines the Companys commitment to building the capacity of young Omanis across the Sultanate through a range of tools and methods. These include practical training, small and medium enterprise support, female empowerment programmes, internships and scholarships.His Highness said: We are grateful for PDOs continued support and welcome its volunteer mentors to our unique educational experience where they can interact directly with the youth and Omani wilderness for a memorable experience.

Raoul said: It is imperative to acknowledge that a nations future lies in its youth. As part of our social responsibility efforts, we seek to empower Omani youths by providing them with unconventional and transformational learning opportunities. Outward Bound Oman provides them with a unique platform to innovate, and create opportunities for themselves to lead the way.

Al Fahal |June 2015 8

The PDO Tubes Model tool, which is based on an innovative approach developed in the centre, describes the total Recovery Factor as the net result of macroscopic and microscopic displacement efficiency.

This tool provides a quick method for the screening and ranking of different recovery mechanisms, and will therefore help in the identification of reservoirs which require a more ambitious development plan or a different recovery methodology.

In addition, it improves the effort of determining what the top-quartile recovery should be by incorporating geological and fluid/rock-based information in the assessment. This patent-pending technique has been presented at numerous external and internal forums and is considered an industry first when it comes to calculating recovery factors based on analytical techniques.

Development of the tool started as part of the water-flood thematic study in 2012 in the Reservoir Solutions and Sub-Surface Consultancy (USR) team. The initial development was followed by rigorous validation on both analytical and numerical terms in 2013 and then came vetting and approval from experts within and outside the organisation.

Since 2014, the tool has been actively used in

contingent resource workshops as a means of identifying the gap volume for the field or prospect being discussed. A web-based version was subsequently developed in the latter half of 2014 and released for general use in February.

The tool was the result of multi-disciplinary team efforts in the Study Centre from both the USR and EOR (USE) teams, involving mainly reservoir engineers and production geologists. This was then followed by close collaboration with the Information Management and Technology Department (UIIB, UIID and UIIE) to release the web-based version.

USR Team Leader Salim Al Mahruqi said: This neat and time-saving tool is in line with Lean initiatives in PDO and it is a clear demonstration that PDO, once again, is leading the way when it comes to innovative thinking,

PDO News

A Model Of InnovationThe Study Centre has launched a ground-breaking technique to determine the target recovery factor for fields being developed under water-flood or enhanced oil recovery

developing and harnessing cutting-edge technology.

Since the team published their first results in Shell TechXplorer in 2013, it generated considerable interest from other Shell operating units. Indeed, to produce such a tool all the way from concept to reality, took teamwork, dedication, and innovative thinking of both petroleum engineers and IT specialists.

Study Centre Manager Sultan Al Shidhani said: PDOs Tubes Model is an innovative method and tool that not only provides better estimates of potential oil recovery levels, but most importantly enables the development of an in-depth understanding of recovery processes at macroscopic and microscopic displacement levels.

Such understanding is a key enabler for unlocking the significant potentials in PDOs hydrocarbon resource base. The tool and the techniques underpinning it are examples of innovations in PDO, reflecting the continuous drive for advancing technologies and developing novel solutions for addressing technical and developmental challenges, achieved through expert and collaborative work.

PDOs Tubes Model is an innovative method and tool

The Study Centre project team

Al Fahal | June 2015 9

After a thorough audit process which ran for over two months, the Public Authority of Civil Aviation (PACA) has formally re-certified all the airports owned, maintained, and operated by PDO. This means that all of the airports operate fully to standards as specified by the

PDO AirportsRe-Certified

PDO News

MEALF is a bi-annual regional event attended by Gulf Co-operating Council operating companies, service firms and academia, and PDO has been an active participant since its creation. The conference and exhibition focuses on the increasing use of artificial lift (AL) technologies in oil production operations throughout the region and offers a chance for dialogue and discussion among new and existing users by sharing best practices, experiences, case histories and methods.The 12-strong PDO team won the prestigious award for the best exhibitor booth and also participated in two panel sessions and gave two technical paper presentations.PDO delegates also outlined the full range of AL mechanisms used by the Company, including electric submersible pumps (ESPs) progressive cavity pumps (PCPs), sucker rods and gas lift technology and some of the challenges faced in the field, such as extending run life. ESP Subject Matter Expert (SME) Atika Bimani addressed the issue of attracting the AL experts of tomorrow by taking part in a panel discussion titled Where Will The Supply Of Future Talent Come From? Summing up PDOs involvement in the event, Atika, a committee member for the forum and lead organiser for PDOs booth, said: There were two main objectives to share our best practice and to learn best practice from others.We think we achieved both while at the same time conveying the message of what PDO

Best of All

ICAO (International Civil Aviation Organisation). The certificate has been issued for two years ending March 2017.

The re-certification process comprised the following major steps:

Submission of the expression-of-interest for re-certification by PDO to PACA

PACA assessment of the application along with the aerodrome manual inspection

PACA assessment / audit of the aerodrome facilities and equipment

Final re-certification or refusal based on the audit findings.

In order to ensure audit and re-certification readiness, teams across all PDO airports at Fahud, Qarn Alam, and Marmul had to ensure compliance in 24 different domains such as safety, aerodrome manuals, checklists, runway friction testing and inspection records.The teams, led by Suhail Al Sheibany, the process holder for Passenger and Quality Control Management, worked diligently to ensure that all the necessary steps were taken to ensure that the audit and re-certification process went smoothly. Logistics Manager Sulaiman Al Shaqsi said: I am proud of the teams that worked on this exercise so tirelessly and the results speak for themselves. It is a moment of great honour that our airports have the same level of certification as some of the best airports in the world. I would like to congratulate all the individuals who played a part in this re-certification process and I hope we can maintain the same level of compliance at our airports.

Staff put PDO firmly on the map at the 8th Middle East Artificial Lift Forum (MEALF) in Qatar

was doing in terms of talent development in this important area of our operations, with the example of ESP on-the-job-training.

Adi Naamani, Production Programming Team Leader North, took part in the second panel session examining where the innovative AL technologies to tackle the challenges of national oil companies would come from. Meanwhile, Production Technologist Abdullah Al Awaid and Production Programmer Hamed Al Abri presented papers on ESPs and PCPs.Company Site Representative Moosa Al Rahbi said: It was my first conference in PDO and it was a great experience to be able to enhance my technical knowledge in artificial lifts, see what all the other companies and professionals are doing and learn from practical experience.It was a great networking opportunity and made me more motivated to work harder.

And Production Technologist Ahmed Al Hinai

said: I was looking at dual ESP technologies running one and having a back-up - talking to the vendors and meeting other oil companies and learning from their experience to see if there was anything we could replicate in PDO.

The Company booth showcased the range of AL technologies used by PDO as well as the in-house real-time well surveillance tools Nibras 3.0 and LOWIS (Life Of Well Information System) and showcased the new PDO gas book titled Omans Invisible Energy.

The two-day event featured an exhibition on related technology and services and forum discussion sessions. It was held under the patronage of His Excellency Dr Mohammed bin Saleh Al Sada, Minister of Energy and Industry for the State of Qatar, and attracted a range of leading oil operators and service companies, including the Kuwait Oil Company, Occidental, Schlumberger, Weatherford and Halliburton.

Al Fahal |June 2015 10

PDO News

Cyber Crime AwarenessA top Royal Oman Police officer has warned staff to be on their guard against cyber criminals who are making a fortune by preying on people online.

Lieutenant-Colonel AbdulRahman Al Kiyumi, head of the ROPs Anti-Economic Crimes Department, said the public sometimes underestimated the impact of computer crime.

Speaking at an awareness session at the BMF building organised by the Information Management and Technology Information Security (UIIC1) team, he said: When people hear about cyber crimes they dont usually fathom the seriousness of those crimes like they do when hearing of burglary or the physical theft of items, although the financial loss and complexity of cyber crimes are way greater.

He explained that cyber criminals employ high-tech methods in conducting, and concealing

the proceeds of, their crimes, co-ordinating their activities across international frontiers, and making it very challenging for the authorities to detect and catch them.

Lt. Col. Al Kiyumi urged the public not to respond to any suspicious phone calls or email messages and added: People ought to be very careful when conducting financial transactions and using electronic means online.

Last year, the losses from internet scams and cyber crimes in the Sultanate came close to RO 1 million. On unauthorised online purchases alone, the loss was RO 365,000, while the losses from breaching and hacking online accounts ran to RO 489,622.

The most common types of cyber crime in Oman are: fraudulent commercial websites, phishing emails tricking people into providing sensitive information, and scam lottery wins.

The Anti-Economic Crimes Department investigates various types of economic crimes in Oman, such as human trafficking, money laundering, currency forgery, fraud, and organised attacks targeting Automated Teller Machines (ATMs).

The session included a video of a real-life operation of the surveillance and arrest of internationally known criminals in Oman. The crooks used an advanced method of installing malware on ATMs which then enabled them to send an SMS command to the ATMs software to dispense cash.

This seminar was part of an overall Information security awareness programme (iSecure) which the UIIC1 team is championing. UIIC1 aims to organise similar events in the future. Those who would like more information can contact iSecure@pdo.co.om.

Lt. Col. AbdulRahman Al Kiyumi

The Saih Rawl Depletion Compression-2 plant at night (Picture by Civil Construction Engineer Haitham Al Kalbani)

Al Fahal | June 2015 11

PDO News

PDOs digital oilfield expertise has been hailed at a major conference as a beacon of best practice for others to follow.

Seven Company engineers participated in the Process Automation, Control, and Optimisation (PACO) Global Learning Conference in Bangalore, India to share their knowledge, learn best practice and discuss future challenges and innovations.

The sessions were highly interactive with active participation from all the Shell business units and joint ventures. Participants were exposed to the entire automation landscape, from instrumentation to systems, process control, modelling and optimisation and people matters.

Delegates from across the world took part in the summit under the banner of One PACO - Delivering Value, indicating how automated processes were delivering greater efficiency and productivity.

Company experts contributed significantly to the gathering, giving three presentations: Process Control & Optimisation in PDO, Process Control Operation Support within PDO and MDPro in PDO. These showed how the Company has managed to embed process control within day-to-day operations and in major projects and demonstrated the huge subsequent benefits.

John Hofland, Principal Automation Engineer at Shell Global Solutions International, said: The PDO contribution to the PACO learning conference was very valuable to

Leaders In Their Field

the participants. PDO demonstrated its leadership in Process Control Optimisation in presentations covering the organisation and work processes, the supporting software and applications and business impact. There was high interest from the audiences, who have a shared aspiration but are at the start of the journey to generate business improvement with upstream process control optimisation.

His colleague Rohit Paranjape, Regional Manager PACO at Shell India Markets Private Ltd, added: There is a huge potential for other sites learning from PDOs best practices.

PDO Process Control and Optimisation (PCO) Support Salim Al Mawali said: PDOs contribution was very well acknowledged within the wider Shell PACO community. There are many upstream sites that want to learn from PDO in terms of the PCO discipline

organisation set-up, and the way our PCO discipline brings value to the business. It was widely acknowledged that PDO is one of the most matured Shell EP sites in the world, and everyone wants to learn from it.

One very important benefit was to see how we compare with other companies within Shell. From networking with other attendees it was clear that we are much more advanced in some areas such as real-time operations and process control than most of the Shell upstream companies.

The event also offered a learning opportunity for the team in terms of understanding PACO tools and processes, Lean initiatives, and new developments such as leak detection methodology, drilling automation and the application of real-time optimisation in upstream activities.

PDO has signed an agreement with the Ministry of Education to create a cadre of education professionals from its concession area.

A task force from the two sides will look at allocating a number of PDO-sponsored scholarships to students from the Block 6 concession area to train as teachers so they can work there.

Among other joint plans is the use of Block 6 schools in the evenings for social, cultural and sports activities. The task force will also oversee the preparation of educational programmes for school support staff in the concession to improve their efficiency and prepare awareness and guidance programmes on health, safety and environment for students and their parents in elementary and secondary schools.

His Excellency Dr Hamood bin Khalfan Al

PDO Backs Community Education Drive

Harthi, Undersecretary for Education and Curricula at the Ministry, and Managing Director Raoul Restucci signed the agreement committing to greater co-operation and co-ordination.

His Excellency said: The agreement will provide opportunities for graduates of the

general diploma certificate to get a scholarship in the field of education in order to prepare teachers from the people of the concession area to help stabilise and localise the teaching profession in the area.

Raoul said: We are pleased to be able to work even more closely with the Ministry of Education to support the schools in our concession area and maximise the opportunities they provide educationally, vocationally and socially.

We will join forces on a number of programmes which will raise standards for both pupils and teachers. Our mantra is: We only succeed if the communities in which we operate succeed and this agreement is further evidence of our aim to serve Oman beyond the safe and efficient delivery of oil and gas and to be a good corporate citizen.

Al Fahal |June 2015 12

PDO News

Earth-Shattering DiscoveryPrincipal Geophysicist Ren Frijhoff has discovered a huge impact crater made by a meteorite around 250 million years ago near the Hazar oil field.

Ren was mapping a 3D seismic reflection survey over the field in the Bahja Rima cluster when he noticed a striking circular feature almost three kilometres underground.

He said: The crater is 125m deep and has a diameter of 2.4km, so it is larger than the Ras Al Hamra camp!

The crater has the characteristic central peak and raised rim around it of a so-called complex impact crater. A second wider ring with a diameter of 3.6km can also be observed. Based on the dimensions of the crater it is estimated that the impacting meteorite had a diameter of more than 30m.

The crater is currently buried at a depth of about 2,900m below ground. It must have been quite a dramatic explosion, sending tonnes of rock into the air.

Oman would have been very different when this happened the surface would have been covered in rivers.

Over the years, as sea levels rose over the landscape, the crater got covered with carbonate platform deposits burying it to its current depth of almost 3km under the ground.

Meteoroids are pieces of rocky and/or metallic debris from asteroids and comets flying through outer space. Occasionally they hit planets and moons creating large craters upon impact and those that hit the Earth are known as meteorites.

The Hazar oil field is 24 km away from the crater and an exploration well, Fawarra North

3D view of the Hazar crater. The wells of the Hazar oil field are shown in the background 24 km away

Barringer crater in Arizona, USA. The crater is about 1.6km in diameter and 150m deep and exhibits a raised rim. The impact is estimated to have occurred 50,000 years ago with a velocity of more than 40,000 km/h

2, was recently drilled at a distance of 9 km.

However, Ren explained: Currently, there are no exploration prospects above or under the feature, so unfortunately, we will probably never sample it with a well.

The worlds best preserved meteorite impact site can be found in northern Arizona, USA.

Al Fahal | June05 13

PDO has completed construction of Omans largest light gauge steel (LGS) office building in just nine months.

Bait Al Bushra (House of Good News) was named in honour of His Majesty Sultan Qaboos bin Saids glorious homecoming in March.

The office complex project at Mina Al Fahal was awarded and built in just a year and has space for 612 staff, with full access for the physically challenged across the ground floor. Initially, it will house staff from the Corporate Security and Electrical Engineering Departments and from the State Audit Institution.

The 9,600m2 two-storey structure is made from 450 tonnes of steel and has over 600 workstations arranged in an open office style, 62 rooms, six break-out areas, 20 collaborative areas and a cafeteria serving healthy food, including vegetarian, vegan and gluten-free options.

Built on sustainable lines, both the air conditioning and heating costs are significantly less than a standard building. At US$16 million, it cost a third of the amount of a conventional building the same size. At its peak, 600 workers were involved in the construction but the project was completed in budget, on time and recorded more than 338,000 Lost-Time-Injury-free manhours.

The contract was the biggest executed for PDO by Integrated Facilities Management (IFM) contractor Carillion Alawi and sub-contractors Blizzard Brothers, ALEMCO and Fahmy. All of the steel production was done in Oman and the furniture, soft furnishings and glass were locally sourced.

At the red carpet opening, attended by Managing Director Raoul Restucci, Infrastructure Director Sami Baqi paid tribute to the contractors and sub-contractors and added: We broke ground on 29 July 2014 and built this LGS office within nine months. Amazingly fast!

Thanks go to the Corporate Real Estate (UIB) team, particularly the Project Engineer Chris Sowerby, for his passion and dedication.

Chris said: The building addresses the requirements for quality office space and is a quick, sustainable and adaptable solution to suit our needs. It is officially classed as a temporary structure but is guaranteed for 35 years.

The look and feel are in line with our open office principles and consistent with the continuing development of workplace standards going back to the construction of the BMF building. We have maximised value with a sustainable solution.

The project team departed from PDOs standard long-build specifications, which are geared towards oil and gas facilities, to speed up the construction of the non-hydrocarbon facility.

Chris said: A lot of departments in PDO have challenged themselves to get this building finished and it has shown that we can do things more efficiently and effectively if we ask ourselves: Why do we have to do it this way, just because we have done it that way for 30 years?

Real Estate Operations Excellence Team Leader and Real Estate Corporate Function Discipline Head Mohammed Al Riyamy said: This building is a showcase where PDO standards have been challenged to such an extent to deliver value both in terms of cost and time. This challenge will pave the way for delivering real estate standards and we expect the first set of standards by the end of the year.

LGS Building Breaks New Ground

PDO News

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