Oman Expects Start of Gas Flow from Khazzan Tight Gas Will Help Attract More Foreign Investment

Oman will see rise in foreign direct investment (FDI) from 2017 when gas is expected to flow from the Khazzan-Makarem tight gas field, said HE Dr Ali Bin Masoud Al Sunaidy, Minister for Commerce and Industry, Oman Tribune reported late last week.

There has not been much growth in FDI, as petrochemical businesses that rely on gas, did not have additional gas for growth, he said.  FDI was at $1.6b in 2013 and fell to $1.2 b in 2014.

The field is expected to deliver 1 bcf per day of gas.

Earlier this year, Times of Oman reported that BP will complete 16 wells in Khazzan tight gas field in Block 61 and will have at least nine rigs in operation by the end of this year.

Sanctioned in December 2013, the Khazzan project represents the first phase in the development of one of the Middle East region’s largest unconventional tight gas plays.

BP is the operator of Block 61 and holds a 60 percent interest. Oman Oil Company for Exploration and Production holds remaining 40 percent interest.