The Government of the Sultanate of Oman and BP signed a gas sales agreement and an amended production-sharing agreement for the development of the Khazzan field with BP as operator.
The full field development will involve a drilling programme of around 300 wells over a period of 15 years to deliver plateau production of 1B ft3 of gas per day and 25,000 barrels per day of gas condensate. The total investment in the full field development is around USD 16B, which includes the investment made to date in the appraisal of the resource and early well test programme.
The Khazzan project represents the first phase in the development of one of the Middle East region’s largest unconventional tight gas accumulations, which has the potential to be a major new source of gas supply for Oman over many decades.
Construction work for the Khazzan project, located in the South of Block 61, will begin in 2014, and first gas is expected in late 2017. Gas production is expected to ramp up to plateau in 2018 and in total the project is expected to develop around 7 trillion cubic feet (tcf) of gas.
