Oman and BP look set to sign a production sharing agreement (PSA) for full-field commercial development of the Block 61 tight gas fields in north-central Oman
Mohammed bin Hamad Al Rumhy, Oman's minister of oil and gas, said, “We are making very good progress. Both Oman and BP have agreed to finalise all agreements by the end of this year. Once all agreements are in place, we expect BP to declare commerciality and then we sign a long-term production sharing agreement with them for 30 years.”
Both parties have already signed a provisional pact, according to Times of Oman.
The minister added that the present appraisal agreement would expire in February 2014.
“We have to sign the production sharing agreement before February because the current agreement will expire by then,” he said.
BP also plans to build a large gas processing plant to process natural gas to be produced from its Block 61.
The gas processing plant is expected to have a capacity to process 28.3mn cubic metres of natural gas per day, which is the anticipated production from Khazzan and Makarem fields in the first phase.
The British oil giant is set to invest between US$20bn to US$24bn for the first phase full-field development of the block.
BP said that it is planning to drill 282 wells and the first delivery of gas is expected by 2017.
READ MORE...
