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Paving the way for second phase of Khazzan gas
BP and Oman Oil Exploration & Production have signed an agreement with the Government of the Sultanate of Oman amending the Oman block 61 exploration and production sharing agreement (EPSA) to extend the licence area, paving the way for further development of the giant Khazzan tight gas field.
Under the amended EPSA, the extension adds more than 1,000 sq km to the south and west of the original 2,700 sq km of block 61. The extension will allow a second phase of development, accessing additional gas in the area already identified by drilling activity within the original block.
BP is the operator of block 61 with a 60% interest and Oman Oil Exploration & Production holds the other 40%. The Khazzan reservoirs in block 61 represent one of the Middle East’s largest unconventional tight gas accumulations and are expected to be a major new source of gas supply for Oman over many decades. Production from Khazzan will make a significant contribution to ensuring continuing stable and long-term domestic supplies of gas for Oman. The field is expected to represent around 40% of the country’s current total domestic gas production.
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 onstream around 2020. Taken together, the two phases are expected to produce 1.5bn cf/d of gas through the development of 10.5tn cf of recoverable gas resources. This will involve the construction of a three-train central processing facility with associated gathering and export systems, and the drilling of over 300 wells over a 15-year period. Improved reservoir performance, drilling efficiencies and other improvements have reduced the well count by around 100 wells from the original Phase 1 plan.
Picture : Bob Dudley, BP Group Chief Executive, and His Excellency Dr Mohammed Al Rumhy, Minister of Oil and Gas of the Sultanate of Oman, signing the Khazzan agreement in Oman
Source: BP
News Item details
Journal title: Petroleum Review
Subjects: Economics, business and commerce, Energy consumption, Commercial, Oil and gas, Offshore exploration, Onshore exploration
