Economy

BP Begins Production at Khazzan Gas Field

BP Begins Production at Khazzan Gas Field”

Oil major BP has started production at its huge $16bn (£12bn) gas project in Oman, its largest new project this year.

Fracking has not been widely used in the Middle East because the region has plentiful remaining supplies of conventional oil and gas, but the rock at Khazzan "is old, deep and very hard and the gas moves through it only grudgingly", according to a source quoted in the Financial Times.

"BP's Khazzan project will be hugely important for Oman's gas supply, with Phase 1 alone supplying 25 percent of Oman's gas by 2019", he said.

"Khazzan further demonstrates BP's ability to consistently deliver large, complex projects on schedule and within budget while applying the industry-leading skills and technology we've developed globally".

The phase one of major tight gas project is expected to deliver one bcf of gas per day to Oman, with an estimated future expansion of 1.5 bcf of gas per day. The company also said that, once development phases one and two are complete, the gas field will produce up to 1.5 billion cubic feet of gas per day.

BP's seven new projects this year are expected to help the company meet its target of producing 800,000 barrels of oil equivalent per day from new projects 2020.

In 2007, the first production sharing agreement for Block 61 containing the Khazzan field was signed and amended in 2013, leading to its extension past year.

Appraisal over 2007-2013 confirmed the existence of significant tight gas resources that could be developed through the application of the company's unconventional gas technology.

Phase One of the Khazzan development is made up of 200 wells feeding into a two-train central processing facility. "Successful first gas marks an important step towards sanction of a second development phase". In total, approximately 300 wells are expected to be drilled over the estimated lifetime of the Khazzan field.

Drilling efficiency has increased significantly during the development of the project.

British energy company BP said it brought lessons learned from hydraulic fracturing in the United States to start production at a natural gas field in Oman.



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