Oman keen to develop shale gas

Oman is planning to explore shale gas in concession areas of Petroleum Development Oman and studies to check the viability of the fields are on, an official from the government said.

The Sultanate produces 3.5 billion cubic feet a day of natural gas.

Meanwhile, negotiations are on between the government and BP for deciding on the terms and conditions for the commercial development of Khazzan and Makarem tight gas fields in Block 61.

The British firm is planning a $15 billion investment over a 10-year period for the full-field development of its Block 61 tight gas fields in north-central Oman.

BP expects to begin commercial development of a natural-gas project by February 2013 and to produce the first gas by 2016. The company estimates Block 61 contains 100 trillion cubic feet of the fuel locked in rocks as much as five kilometers underground.

The government signed a major exploration and production sharing agreement with BP in 2007. The agreement covers an area of some 2,800 square kilometres, which contains a number of 'tight gas' reservoirs, which were first discovered in the 1990s.