The multinational oil and gas company BP and its partner Oman Oil Company Exploration & Production (OOC) have approved the development of Ghazeer, the second phase of the giant Khazzan gas field in Oman. The Khazzan Phase Two is expected for 2021 and will add 500 mcf/d of gas (14 mcm/d, 5.15 bcm/year).
BP is the operator of Block 61 with a 60% stake, in partnership with Oman Oil Company Exploration & Production (40%). In December 2013, the Sultanate of Oman and BP signed an amended exploration production sharing agreement (EPSA) for the development of the Khazzan Project. Works on the project started in 2014 and the Khazzan Phase One became operational in September 2017. Made up of 200 wells feeding into a two-train central processing facility, it is currently producing at design capacity of 1 bcf/d (28 mcm/d, i.e. 10.3 bcm/year). A last amended EPSA (for the Khazzan Phase 2) was signed later in 2016.
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 (296 bcm) of recoverable gas resources.