The first phase of development of Oman’s giant Khazzan gas field was officially inaugurated on Thursday 9 November 2017 by His Highness Sayyid Haitham bin Tarik Al’Said, Minister of Heritage & Culture for Oman, and Bob Dudley, BP’s group chief executive.
The Phase One development started gas production in September 2017, ten years after the signing of BP’s production sharing contract with Oman and almost four years after the development was approved.
Speaking at the Khazzan field, Bob Dudley said: “It is an honour to be here in Oman on this momentous occasion. Although this marks just the beginning of operations for Khazzan, we have already been working towards this for ten years, building close relationships with Oman and our partners. I expect these will continue to grow and deepen.
“Visiting this huge project that we have together built here in just a few years, I can see why it has been described as ‘the city in the sand’. And this city will deliver benefits for Oman and BP for decades to come. With an estimated 10.5 trillion cubic feet of recoverable gas resources in place in Khazzan, this is very much just the start of the journey.”
Eng. Isam bin Saud Al Zidjali, CEO of Oman Oil Company, commented: “As an investment arm of the Sultanate in the energy sectors, we in Oman Oil are honoured to be part of the Khazzan Project and help maximize the value of Oman’s natural resources. I am delighted by the fact that the project has contributed to the sustainable development of the nation on many fronts, including human capital development, new technology applications, and social responsibility, to name only a few.”
Phase One of the Khazzan development will include a total of 200 wells feeding into a two-train central processing facility. At peak, the Phase One development involved a workforce of around 13,500. Phase One production is expected to plateau at 1 billion cubic feet of gas per day (bcf/d).
When the second phase of development of the Khazzan field - known as Ghazeer - is fully onstream total production is expected rise to 1.5 bcf/d. In total, approximately 300 wells are expected to be drilled over the estimated lifetime of these two phases of development of the Khazzan field.
BP press office, London: +44 (0)207 496 4076, firstname.lastname@example.org
BP Oman press office: +968 24684151
BP is the Operator of Block 61, which contains the Khazzan field, holding a 60% interest. The Oman Oil Company for Exploration and Production holds a 40% interest
The production sharing agreement (PSA) for Block 61 was first signed in 2007, amended in 2013 and extended in 2016. Appraisal over 2007-2013 confirmed the existence of significant tight gas resources that could be developed through the application of BP’s extensive unconventional gas experience and technology. The first phase of development of the field was sanctioned in December 2013.
The original Block 61 PSA covered an area of 2,800km2 in central Oman, approximately 350km southwest of Muscat. The Block 61 extension agreed in 2016 added a further 1,150km2 to the south and west of the original block and enabled a second phase, Ghazeer.
Drilling efficiency has increased significantly during the development of the Phase One project. The average time to drill and complete a vertical well was reduced by 27% and a record time of 60 days was achieved for completion of one well.
Many local Omani businesses have contributed to the Khazzan project. Approximately 38% of the total contract spend to date has been awarded to local oil and gas services companies.
With its national oil company partners, BP is currently helping to develop more than 5.5 million barrels per day of oil and gas production throughout the Middle East.
Khazzan Phase One was one of the seven major upstream projects that BP expects to bring into production through 2017. For more about BP’s seven major projects in 2017, please visit: www.bp.com/7in2017.