BP has signed a gas sales agreement and an amended production sharing agreement for the development of the Khazzan field, with BP as operator, with the Government of Oman.
The full field development will involve a drilling programme of around 300 wells over 15 years to deliver plateau production of 1 bcf/d (28.3 mcm/d) of gas and 25,000 bbl/d of gas condensate. This volume is equivalent to around a third of Oman’s total daily domestic gas supply and will make a significant contribution to ensuring continuing stable supplies from domestic sources. The total investment in the full field development is around US$16bn, which includes the investment made to date in the appraisal of the resource and early well test programme.
Construction work for the Khazzan project, located in the South of Block 61, will begin in 2014, and first gas is expected in late 2017. Gas production is expected to ramp up to plateau in 2018 and in total the project is expected to develop around 7 tcf (nearly 200 bcm) of gas. The full field development involves a 15-year drilling programme, with production tied back to a new central processing facility in Block 61 via a 500 km long gathering system.