Oman is a Muslim Arab country located in the south east of the Arabian Peninsula. Islam is the official religion and Arabic is the official language. However, English is widely spoken in Oman. Tribal system is the second most factors that affect Omanis life after Islam. Oman is a middle-income economy that is heavily dependent on dwindling oil resources. Because of declining reserves, it has actively pursued a development plan that focuses on diversification, industrialization, and privatization, with the objective of reducing the oil sector's contribution to GDP to 9% by 2020. Tourism and gas-based industries are key components of the government's diversification strategy. By using enhanced oil recovery techniques imported by international oil companies, Oman succeeded in increasing oil production, giving the country more time to diversify, and the increase in global oil prices throughout 2010 provides the government greater financial resources to invest in non-oil sectors.
Occidental Oman Inc (Oxy) was one of these oil companies which utilized its experience to increase the oil production. Oxy Oman operations are concentrated at the Mukhaizna Field in south-central Oman, the Safah Field in northern Oman, and adjacent areas. Oxy have increased production, reserves and scope during our 30-year tenure in Oman, and today is the country's second-largest oil producer.
At the Mukhaizna Field, Oxy has implemented an aggressive drilling and development program, including a major pattern steam flood project for enhanced oil recovery. To produce feed water for the steam needed for the project, non-potable water from multiple sources, such as water separated from oil production, is conditioned using various technologies - including the largest mechanical vapor compressors ever built. The exit rate of gross daily oil production at the Mukhaizna Field is over 12 times higher than the production rate in September 2005, when Oxy assumed operation of the field. Oxy plans to steadily increase production at Mukhaizna through continued expansion of the steam flood project.