BP has a long history of oil and gas exploration and production in the Middle East. It is a major investor in Oman and one of the world’s pioneers in tight gas production, bringing technology and experience to develop one of the Middle East’s largest unconventional gas resources – the Khazzan field in Block 61.
In late September 2017, BP started production from Phase One of the Khazzan gas field. Phase One of Khazzan is made up of 200 wells feeding into a two-train central processing facility, with production reaching 1 billion cubic feet of gas per day (bcf/d). Once the second phase of the Khazzan is fully up and running in 2021, production is expected rise to 1.5 bcf/d. Approximately 300 wells are expected to be drilled over the estimated lifetime of the Khazzan field.
The Khazzan tight gas reserves lie at depths of up to five kilometres in narrow bands of extremely hard, dense rock. These complex and challenging conditions require specialized drilling equipment, the precise drilling of both vertical and horizontal wells, and well stimulation to free the gas. Phases One and Two will together develop an estimated 10.5 trillion cubic feet of recoverable gas resources. The total gas produced will make a significant contribution to ensure stable supplies from domestic sources.
On 16 December 2013, BP and the government of the Sultanate of Oman signed a gas sales agreement and an amended production sharing agreement (EPSA) for the development of the Khazzan field in Block 61, known as Khazzan Phase One. In November 2016, the EPSA was amended to extend the license area of the block and enable further development of additional resources in the area. This second phase of the project, now known as the Ghazeer extension, was sanctioned in early 2018 and development has begun.
BP is the operator of Block 61 and holds a 60% interest. Oman Oil Company for Exploration & Production holds a 30% interest and PC Oman, a wholly owned subsidiary of Petronas holds 10%. It took less than four years, a workforce of 13,500 at peak times and more than 90 million man-hours logged to build the Khazzan project.
Other BP activities in the Sultanate of Oman: