BP paves way for further development of giant Omani gas field

11/8/2016

MUSCAT, Oman -- BP and Oman Oil Company Exploration & Production have signed an agreement with the government of Oman to amend the Block 61 exploration and production sharing agreement (EPSA). The new agreement, which extends the license area, paves the way for further development of the giant Khazzan tight gas field.

Under the amended EPSA, the extension adds more than 1,000 km2 to the south and west of the original 2,700 km2 of Block 61. The extension will allow a second phase of development, accessing additional gas in the area, which has already been identified by drilling activity within the original block. Development of this additional resource is subject to final approval, expected in 2017, by both the Omani government and BP.

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

The Khazzan reservoirs in Block 61 represent one of the Middle East’s largest unconventional tight gas accumulations, and they are expected to be a major new source of gas supply for Oman over many decades.

The Phase 1 project, sanctioned in December 2013, is more than 80% complete and remains on schedule to deliver first gas in late 2017. Subject to final approval, the Khazzan Phase 2 project is expected to come on stream around 2020.

Taken together, the two phases are expected to produce 1.5 Bcfgd through development of 10.5 Tcf of recoverable gas resources.

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