Oman Plans to Spend $2 bn on Gas Exploration

Petroleum Development of Oman (PDO) plans to invest between $1.5 billion and $2 billion from next year for gas exploration, the company said Monday.

"We are currently producing some 90 million cubic feet, but from next year we are going to invest between $1.5 billion and $2 billion for gas exploration," Raul Restucci, PDO's Managing Director told Times of Oman.

The Sultanate's national oil company has recorded an average production of 1.25 million barrels of oil equivalent per day in 2013. Also, the total natural gas-developed reserves increased by 1.3 trillion cubic feet last year, Times of Oman said.

Oman is working on some major gas projects. 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.

Khazzan has the potential to be a major new source of gas supply for Oman for many decades, according to BP.

BP is the operator of Block 61 and holds a 60% interest. The Oman Oil Company for Exploration and Production (OOCEP) holds remaining 40% interest.

OOCEP is also preparing to bring its Abu Butabul tight gas field in Block 60 into commercial production. The project will be Oman’s first unconventional hydrocarbon project to become operational.