BP, Oman in Final Stages of Talks to Ink Tight Gas Pact

Oman and BP are in an advanced stage to sign a production sharing agreement for full-field commercial development of Block 61 tight gas fields in north-central Oman, according to Times of Oman. 

"We are making very good progress. Both Oman government and BP have agreed to finalise all agreements by the end of this year. Once all agreements are in place, we expect BP to declare commerciality and then we sign a long-term production sharing agreement with them for 30 years," Mohammed bin Hamad Al Rumhy, the minister of oil and gas, told Times of Oman. 

The two parties inked a provisional deal earlier this year.

The British giant is planning to build a large gas processing plant to process natural gas to be produced from its Block 61 tight gas fields. The plant will have a capacity to process one billion cubic feet of natural gas per day, which is the anticipated production from gas-rich Khazzan and Makarem fields in the first phase. 

Al Rumhy also said that the testing of gas wells is complete now. "They are now assessing EPC contract for drilling of new wells and facilities, which will be awarded soon." 

BP is expected to invest $20billion-$24 billion for the first phase full-field development of its Block 61 tight gas fields, Times of Oman said. 

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