New project to increase Oman’s gas production by 40 percent: BP

Published March 22nd, 2017 - 12:00 GMT
Field and well development plans are already underway and the first development well has been drilled. (File photo)
Field and well development plans are already underway and the first development well has been drilled. (File photo)

The second phase of BP’s Block 61 gas project in Oman is expected to deliver 0.5bn cubic feet of gas per day by 2020, according to BP.

In a press release issued on Monday BP said the phase 1 (Khazzan) of Block 61 project is on track to deliver first gas by end of 2017, producing 1bn cubic feet of gas a day. It said the combined plateau production from phase 1 (Khazzan) and phase 2 (Ghazeer) is expected to be 1.5bn cubic feet of gas a day, increasing Oman’s current total domestic gas production by around 40 percent.

Last year BP signed an agreement with the sultanate’s government committing to amend Block 61 exploration and production sharing agreement (EPSA). The amendment to the Block 61 EPSA was ratified with the issue of Royal Decree 14/2017 on Sunday by His Majesty Sultan Qaboos bin Said.

The amended agreement extends the licence area of the block and enables further development of the gas reserves in the area.

Block 61 is located around 350km southwest of Muscat, with the southern part of it known as the Khazzan field. The newly extended area, which adjoins Khazzan to the southwest, will henceforth be known as ‘Ghazeer’. It adds approximately 1,000sqkm to the block, bringing the total Block 61 size to 3,950sqkm.

Field and well development plans are already underway at Ghazeer and the first development well has been drilled. Around 3.5tn cubic feet of accessible gas are estimated to exist at Ghazeer and 125 wells will be drilled over the project lifetime to access it, BP said.

BP holds a 60 percent interest in Block 61, while Oman Oil Company for Exploration & Production (OOCEP) holds a 40 percent interest.

BP Oman president Yousuf al Ojaili said, “The issuing of the Royal Decree is a momentous occasion for BP Oman as we continue the development of Block 61 with our partner OOCEP. We are on track to deliver Khazzan first gas later this year and, in parallel to that, we will be driving ahead the field development of Ghazeer. Our knowledge and experience from the Khazzaan field will help develop the Ghazeer field with the greatest efficiency.”

As the largest investor among the integrated oil companies in the Middle East and North Africa, BP brings a wealth of technical expertise in advanced seismic, hydraulic fracturing and horizontal well design.

This deep technical knowledge is key to unlocking the vast reserves of gas which are contained in the deep, dense and extremely hard rock strata at Khazzan and Ghazeer.


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