Oman, BP Sign Tight Gas Project Deal

Oman and BP on Monday signed a gas sales agreements for the development of the Khazzan field with total investment of around $16 billion, with BP as operator.

According to the British firm, full field development will involve a drilling programme of around 300 wells over 15 years with production of one billion cubic feet (28.3 million cubic metres) of gas per day and 25,000 barrels per day of gas condensate.

The Khazzan development follows an extensive appraisal programme that began after BP signed an agreement with the government in January 2007 for the appraisal and development of Block 61.

Block 61 contains significant volume of unconventional gas, distributed across several reservoirs, with estimates of total gas in place of up to 100 trillion cubic feet.

Construction work is expected to commence in 2014 with first gas expected in 2017, BP added.

“The amended exploration and production sharing agreement and a gas sales agreement  extend for an initial 30 years and also provide for the additional appraisal of further gas resources within Block 61, which are expected to be developed in subsequent project phases,” BP said.

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