BP said it has begun production from Oman’s Khazzan gas field, its sixth and largest of the seven projects it expects to bring online this year.
Operated by BP in a 60-40 per cent partnership with Oman Oil Company Exploration and Production, phase one of the Khazzan development is made up of 200 wells. Production expected to plateau at 1 billion cubic feet of gas per day (bcfd), while the second phase will see production ramp up to 1.5 bcfd. 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 of recoverable gas resources.
“With further development already planned, this giant field has the potential to produce gas for Oman for decades to come,” said Bob Dudley, BP group chief executive. “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,” Dudley added. “In this case, tight gas techniques we perfected in the US have been brought to Oman and we are very pleased with the results.”
BP said expects to start-up seven upstream projects in 2017 -- making it one of the most important years for commissioning new projects in BP’s history.
Khazzan comes after BP’s onshore compression and Juniper projects in Trinidad, West Nile Delta Phase 1 in Egypt, Persephone in Australia and the Quad 204 project West of Shetland.
There remains only the Eni-operated Zohr project in Egypt which is on schedule to start before year end.
These seven projects are expected to make a significant contribution to the 800,000 barrels of oil equivalent per day of production that BP expects to add by 2020.
The Khazzan tight gas reserves lie at depths of up to five kilometres in narrow bands of extremely hard, dense rock.
"BP's Khazzan project will be hugely important for Oman's gas supply, with Phase 1 alone supplying 25 per cent of Oman's gas by 2019. Oman's gas production will increase by 25 per cent between 2016 and 2019,” said Liam Yates, research analyst, Middle East & North Africa upstream at Wood Mackenzie.
“As well as satisfying domestic demand, we expect Khazzan to allow incremental LNG exports of 1.5 Mtpa from Oman’s LNG plants."
Mohammed Al Rumhy, Oman’s minister of oil said the project was delivered on schedule and within budget “(Khazzan) will result in realising more gas reserves and more production of gas that our country needs to support our energy planning and requirements,” he said.
BP said the average time to drill and complete a vertical well was reduced by 27 per cent and a record time of 60 days was achieved for completion of one well. Thirty-eight per cent of the total contract spend to date has been awarded to local oil and gas services companies.
Isam bin Saud Al Zidjali, CEO of Oman Oil Company, said “This increment of gas supplies will provide feedstock for development of downstream and petrochemical industries.”