BP, Eni Discuss Oman Upstream Block Terms

UK BP and Italy's Eni signed a heads of agreement with the oil ministry of Oman January 14 to work jointly towards a significant new exploration opportunity in Oman.

Already an LNG exporter, the sultanate also wants to produce more gas to power the domestic economy. The block is near the giant Khazzan gas field. 

Two companies, which have a long-term relationship in upstream projects outside Europe. said in statement that they will work with the government towards the award of a new exploration and production sharing agreement (EPSA) for Block 77 in central Oman and will work on agreeing terms with the ministry.

BP upstream boss Bernard Looney said: “This would represent a further deepening of BP’s important position in Oman, building on our successful delivery of the major Khazzan project in 2017 and its second phase of development that is currently under construction. We look forward to continuing to explore and efficiently develop the country’s resources, working in close partnership with Eni and Oman to underpin our commitment to delivering long-term gas production for Oman.”

Block 77, with a total area of almost 3,100 km², is lin central Oman, 30 km east of the BP-operated Block 61 which contains the already-producing Khazzan gas project as well as the Ghazeer project, under development.

BP has farmed into Eni's giant Zohr project offshore Egypt which is now producing, and also its Nour offshore find there. The two are also partners in Vico Petroleum, active in Indonesia. BP is operator and 60% owner of Khazzan, the government and Malaysian Petronas having 30% and 10% respectively.