Khazzan gasfield development, Oman

7th February 2014

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

  

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Name and Location
Khazzan gasfield development, Oman.

Client
The government of Oman and BP.

Project Description
The Khazzan project is located in the south of Block 61.

Block 61 contains a significant volume of unconventional gas, distributed across several reservoirs, with estimates of up to 28.32-billion cubic metres of total gas in place. The Khazzan project represents the first phase in the development of one of the Middle East region’s largest unconventional tight gas accumulations, which can be a major new source of gas supply for Oman for many decades.

The full field development involves a 15-year drilling programme of about 300 wells, using eight drill rigs to deliver plateau production of 28.32-million cubic metres of gas a day and 25 000 bbl/d of gas condensate, with production tied back to a new central processing facility in Block 61 through a 500-km-long gathering system.

Value
The total investment in the full field development is about $16-billion, which includes investment to date in the appraisal of the resource and early well test programme.

Duration
Construction will begin in 2014, with first gas expected in late 2017. Gas production is expected to ramp up and plateau in 2018.

Latest Developments
The government of Oman and BP signed a gas sales agreement and an amended production sharing agreement for the development of the Khazzan gasfield with BP as operator in December 2013.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
BP Oman, Thuraya Al Taei, tel +968 2468 4151 or email Thuraya.AlTaei@uk.bp.com.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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