BP Plans Significant Investment in Oman

BP expects to invest an estimated $15 billion in the full field development of its gas-rich Block 61 concession, which includes the Khazzan and Makarem fields, in north central Oman.

The investment will target part of the estimated 30 trillion cubic feet (tcf) of tight gas trapped in deep reservoirs at depths of between 4,500 — 5,000 metres within BP’s Block 61 concession.

The first phase of the project will develop about 7-8 tcf of gas, with other reserves within the concession planned for development in subsequent phases. With projected output averaging 1.2 billion cubic feet (bcf) per day, the Khazzan project has the potential to significantly scale up Oman’s total gas supply currently pegged at around 3 bcf per day.

BP, in the midst on drilling its ninth appraisal well, has just completed of the construction of its Extended Well Testing facility that will channel test gas from early wells already drilled as part of the process to access the performance of the wells, rate of decline. etc., in order to determine the commerciality of proceeding with a larger development.

A decision to proceed, due to be made before the end of next year, will boost Oman’s total gas production by a third.

Read the Full Article from the Oman Observer HERE