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Khazzan gas project nears completion of phase one in Oman

Gas

BP Oman has announced that phase one of its massive Khazzan natural gas project is 80 percent complete and on track to deliver first gas near the end of 2017

Work on the Khazzan tight gas project, which is located on a previously undeveloped desert site 350 km south of Muscat, began in 2014. The completed development is expected to eventually contribute roughly a third of Oman’s natural gas supply.

BP Oman president Yousuf Al Ojaili commented, “This is a world class project and with key infrastructure and many buildings now in place it is possible to see the real shape and scale of the facility emerging. Our aim is for first gas to be flowing by the end of 2017, representing a significant moment for Oman, with the gas that comes from Khazzan substantially increasing our country’s overall supply and supporting greater diversification of Oman’s industrial base. Reliable gas supplies are needed for the country’s power sector and energy intensive industries. Also, this unique project is an excellent opportunity to develop Omani expertise in tight gas development and BP is proud to lead this effort.”

BP Oman is lead partner in the project with a 60 per cent interest. Oman Oil Company Exploration & Production holds 40 per cent. The vast majority of the infrastructure for the project is already in place. This includes 56 km of roads, several thousand metres of power lines (including broadband networks) and a 60 km water pipeline from Hanya. Foundations and structures have also been put in place and equipment installation is in progress for the two-train central gas processing facility. The water treatment plant, waste management area and electricity substation have also been completed along with accommodation units for the construction workforce of up to 12,000.

The Khazzan drilling programme is also on track with 38 of the 50 wells needed by first gas already drilled. BP commented that it has plans in place with extensions to be contributing 1.5bcf of gas per day to the Omani economy.