The production has begun from the giant Khazzan gas field, which is operated by BP in partnership with Oman Oil Company Exploration and Production
The phase one of major tight gas project is expected to deliver one bcf of gas per day to Oman, with an estimated future expansion of 1.5 bcf of gas per day.
According to Dr Mohammed Al Rumhy, minister of oil and gas of the Sultanate of Oman, “This will result in realising more gas reserves and more production of gas that our country needs to support our energy planning and requirements.”
Bob Dudley, group chief executive of BP, commented, “The start of production from Khazzan, BP’s sixth and largest major project start-up so far this year, is an important milestone in our strategic partnership with Oman. With further development already planned, this giant field has the potential to produce gas for Oman for decades to come.”
BP is planning to start-up seven upstream major projects in 2017, with an aim to make a contribution to the 800,000 boepd of production to add by 2020.
“Khazzan further demonstrates BP’s ability to consistently deliver large, complex projects on schedule and within budget while applying the industry-leading skills and technology we’ve developed globally,” Dudley added.
The Khazzan tight gas reserves lie at depths of up to five kilometres in narrow bands of dense rock. According to BP, These complex conditions require specialised drilling equipment and well stimulation to free the gas.
Liam Yates, research analyst, Middle East and North Africa upstream, said, "BP's Khazzan project will be hugely important for Oman's gas supply, with Phase 1 alone supplying 25 per cent of Oman's gas by 2019. Oman's gas production will increase by 25 per cent between 2016 and 2019. As well as satisfying domestic demand, we expect Khazzan to allow incremental LNG exports of 1.5 mtpa from Oman’s LNG plants."
The production sharing agreement for Block 61, which contains the Khazzan field, was first signed in 2007 and was amended in 2013 and extended in 2016. Appraisal for 2007-2013 confirmed the existence of significant tight gas resources. The first phase of development of the field was sanctioned in December 2013.
“While BP provided advanced seismic, hydraulic fracturing and well design expertise, many local Omani businesses contributed to the Khazzan Project. In fact, approximately 38 per cent of the total contract spend to date has been awarded to local oil and gas services companies,” said the company in a statement.
