BP and Oman Oil have started production at the giant Khazzan tight gas field (Oman) and the Khazzan Phase One is now operational. It is expected to deliver 1,000 mcf/d (28 mcm/d or 10.2 bcm/year) to the Sultanate of Oman. The Phase One of the Khazzan development is made up of 200 wells feeding into a two-train central processing facility.
The Khazzan Phase Two is expected for 2020 and will add 500 mcf/d of gas (14 mcm/d or 5.15 bcm/year). The combined plateau production from Phases One and Two is then expected to total approximately 1.5 bcf/d (42 mcm/d or 15.5 bcm/year), equivalent to around 40% of Oman’s current total domestic gas production. About US$16bn have been invested in the project development and in total, about 300 wells are expected to be drilled over the estimated lifetime of the Khazzan field. Phases One and Two will together develop an estimated 10.5 trillion cubic feet (297 bcm) of recoverable gas resources.
BP is the operator of Block 61 with a 60% stake, in partnership with Oman Oil Company Exploration & Production (40%) and the original production sharing agreement (PSA) was signed in 2007. In December 2013, the Sultanate of Oman and BP signed an amended exploration production sharing agreement (EPSA) for the development of the Khazzan Project. A last amended EPSA (for the Khazzan Phase 2) was signed later in 2016.