Energy giant BP has announced that despite cut in its capital expenditure this year, it will complete the exploration of 16 wells in Oman’s Khazzan tight gas field and will have at least nine rigs operational by the end of 2015
BP Oman chief operating officer Dave Campbell said that the reduction in global capital expenditure, in a bid to counter the impact of plunging oil prices and fall in profits, will not affect the ongoing Khazzan tight gas field project.
“The Khazzan project is on track, on budget and on schedule. The company is also ready to increase drilling activity in the technically challenging natural gas field. Five rigs are operational at the moment and several rigs will be added soon,” he noted.
The Khazzan tight gas field project represents the first phase in the development of one of the Middle East region’s largest unconventional tight gas accumulations, which has the potential to be a major new source of gas supply for Oman for many decades.
The project involves drilling of around 300 wells over the next 15 years and will achieve production of around 28.32mn cu/m of gas per day, equivalent to an increase of around one-third of Oman’s total daily domestic gas supply.
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