BP in Advanced Talks to Develop Oman Tight Gas Reserves

BP is in advanced talks with Oman to develop the country’s substantial tight gas reserves.

The British energy giant has already spent $700 million to appraise the Khazzan and Makarem gasfields, and has concluded that production is feasible. It expects to make a final investment decision by February, the National has reported.

At a cost of up to $20bn, BP would be able to produce at least 1.2 billion cubic feet a day over a 10-year period, the report said. Gas production could start as early as 2016.

Like most of its GCC neighbours, Oman urgently needs to expand its gas supply to cater for the rising electricity requirements of its population and industry.