Oman
bp signed its first exploration agreement in Oman back in 1925. A century later, we’re operating one of the largest tight gas reservoirs, Block 61
bp: 100 years in Oman
What we do
Oman continues to be a strategic country for bp. Through our various projects at bp, we aim to encourage economic diversification and empower local talent.
Block 61
bp has a long history of oil and gas exploration and production in the region. In Oman, bp is the operator of Block 61 (Khazzan and Ghazeer) and holds 40% interest. OQEP holds 30% interest, PTTEP holds 20% and PC Oman Ventures Limited, a wholly owned subsidiary of Petronas, holds 10%. Block 61 produces 1.5 billion cubic feet of gas a day and nearly 55,000 barrels a day of associated condensate. With an estimated 10.5 trillion cubic feet of recoverable gas resources. The block has the capacity to deliver around 35% of Oman’s total gas demand.
Gas from Block 61 is distributed for domestic consumption via Oman’s national gas grid, while also boosting availability of feedstock supply for Oman LNG.
bp in Oman – what we do
Timeline
- 2007: production sharing agreement for Block 61 Khazzan field signed.
- 2007-2013: appraisal confirmed existence of significant tight gas resources.
- 2013: first phase of field development, Khazzan, sanctioned.
- 2016: bp signed an agreement with the Government of the Sultanate of Oman to amend the Block 61 Exploration and Production Sharing Agreement (EPSA). This added a further 1,150km2 to the south and west of the original 2,800km2 Block 61 development, allowing a second phase of development, Ghazeer.
- September 2017: first gas from Block 61 Phase 1 Khazzan project delivered ahead of schedule.
- April 2018: second phase of field development, Ghazeer, sanctioned.
- March 2020: royal decree permits exploration activities in Block 77 to progress, including seismic data processing and the drilling of one exploration well within the next three years.
- October 2020: first gas from Ghazeer delivered ahead of schedule, adding 0.5 bcf of daily gas production.
- February 2021: bp welcomes PTTEP to Block 61 partnership.
- September 2022: Block 61 Phase 1 Khazzan project completes 5 years of production.
Outside Block 61
- We are supplying calcined petroleum coke to Sohar Aluminum, which operates a major smelter in Sohar.
- Block 77: In January 2019, bp and ENI signed an EPSA agreement with the government to work jointly towards an exploration opportunity in Block 77. In October 2023, we initiated the first drilling activities in Block 77 after signing a joint-venture ESPA agreement with Eni.
- LNG: In November 2023, Oman LNG signed a sale and purchase agreement (SPA) with bp to supply 1 million metric tonnes per annum (MTPA) of LNG for bp for 9 years, starting 2026.
Developing our people
We’re committed to developing a world class team who live our values every day. To achieve this, we’re focused on developing great leaders, creating a truly global workforce and growing the right capabilities – underpinned by a safe, diverse and inclusive culture, where everyone feels valued and able to deliver to the best of their abilities.
Sustainable development
We’ve launched the fifth edition of our socioeconomic review, which highlights our commitment to Oman’s sustainable development.
Omanisation
bp is committed to the development of a national workforce in Oman. In 2024, Omani nationals represented over 92% of bp’s workforce in the Sultanate – years ahead of the growth plan of 90% by 2025.
Graduate programme
The bp graduate programme was launched in the UK in the early 1990s and was introduced to Oman in 2010. The competency-based programme is designed to prepare graduates for roles across bp Oman’s business. It helps bring consistency in leadership and technical development across the wider company.
By 2024, over 91 Omani graduates had been recruited via the programme. They have focused career plans while building skills in different disciplines.
International assignments and global roles
Working abroad is a recognized way to gain and share knowledge and experience. bp Oman currently has several staff working in some of bp’s worldwide operations, helping to boost their capabilities, including those who hold senior positions. Over the past 17 years, we have placed 57 Omanis in global roles, contributing to different regions and entities and offering more than 200 Omanis international assignments.
Technician development programme
In 2012 the company set up its Technician Development Programme, with candidates coming in from technical colleges and universities across the Sultanate to complete a four-year programme, including 18 months working towards a National Vocational Qualification. By 2024, 110 technicians were trained, many of whom now work at Block 61 as mechanical, electrical and production engineers. Some of these technicians and graduates have also had the opportunity to work with bp’s partner OQ and Oman LNG, thanks to an agreement between the three companies.
Our commitment
bp Oman’s overall goal is to create a sustainable legacy that supports Oman’s strategic goals for energy security and long-term economic diversification, whilst empowering local people, helping create a self-sufficiency and progressive future.
Prioritizing in-country value
We’re proud to support the sustainable development of Omani society, which we do through three main strategies:
- supporting local business growth and overall economic productivity
- encouraging the development of Omani skills and capability; and
- generating employment and training opportunities.
As a result of our commitment to maximising in-country value, spend with Omani registered companies exceeded $345 million in 2024. We recognize the benefits international suppliers bring to the local market in terms of technology transfer, employment, training, and building capability to international standards.
Ruwad national training programme
We signed an agreement with Oman Energy Society (OPAL) and a number of our contractors to provide internship and potential employment opportunities for graduates with various energy companies in Oman. The first two ‘Ruwad’ batches enabled a total of 57 candidates to be hired.
Social investment programme
bp Oman’s long-standing social investment programme is a unique model that works towards serving and empowering local Omani capabilities in driving Oman towards a self-sufficient and progressive future.
Since the launch of the social investment programmes in 2014, we have positively impacted the lives of over 170,000 people through more than 150 initiatives. Our initiatives are delivered under three main themes: enterprise development, education and energy sustainability.
In 2024, we launched our first social investment publication, ‘10 years of empowering Omani capabilities’, which reflects on the journey of our social investment programmes and its impact on Oman’s people.
10 years of empowering Omani capabilities
In 2024, we launched our first social investment publication, ‘10 years of empowering Omani capabilities’, which reflects on the journey of our social investment programmes and its impact on Oman’s people.
bp’s office in Oman
BP Exploration (Epsilon) Ltd
PO Box 1649, PC 130 (Al Aziba) Muscat
Bait Salam Building
Sultanate of Oman
Office: (00968) 22839000
