BP, Oman Prepare for Khazzan Phase 2

The UK major BP and Oman Oil Exploration & Production have signed an agreement with the government that extends the coverage of the Khazzan exploration and production-sharing agreement (EPSA).

The area is now another 1000 km² larger than before, taking it to 3,700 km² and 10.5 trillion ft³ of recoverable resources. The increase allows the production of more gas in an area that has already identified by drilling activity within the original block, BP said November 8. First gas is expected in 2020, subject to a final investment decision.

BP is the operator of Block 61 with a 60% interest and Oman Oil Exploration & Production holds the other 40%.

Oil minister Mohammed Al Rumhy said: “BP recently reached over 80% progression on the Khazzan project completion and is on track to deliver first gas near the end of 2017, and I am delighted to see BP taking additional acreage that will result in realizing more gas reserves and more production of gas that our country needs to support our energy planning and requirements.”

BP CEO Bob Dudley commented: “BP is proud to expand our co-operation in the Khazzan project which will be the major source of energy for the Omani economy for decades to come. This expansion will build on our work on the first phase, working closely with our Omani partners and demonstrates our commitment to invest in a significant project that will deliver long-term value to both Oman and BP.”

Khazzan development

(Credit: BP)

Production from Khazzan is expected to represent around 40% of the country’s current total domestic gas production.

William Powell