A new study is showing…
Argentina’s shale resources are considered…
The Sultanate of Oman has signed a deal with oil major BP and Oman Oil to expand their development block in the Khazzan tight gas field, adding another 1,000 kilometers to the block in a second phase of development.
Currently covering 2,700 square kilometers, the BP-Oman Oil Block 61 will now include an additional 1,000 square miles stretching to the south and west and giving them accessing to more tight gas resources.
“Khazzan is a major resource with the potential to produce gas for Oman. This expansion of its development will build on the success we are already seeing in our work on the first phase, working closely with our Omani partners, and applying BP’s leading technology and extensive tight gas experience,” BP Group CEO Bob Dudley stated.
Related: In Spite Of Its Vast Oil Reserves, Cuba Fails To Woo Investors
This has been a fairly lucrative block for BP and Oman oil, who launched the first phase of development only in December 2013 and plan to deliver their first gas from the field in the fourth quarter of next year.
The second phase should come online in 2020.
All said and done, the two companies plan to produce 1.5 billion cubic feet of gas per day through the two project phases.
Related: A Market Collapse Is On The Horizon
There is an estimated 10.5 trillion cubic feet of recoverable natural gas in the extended block—an amount equal to some 40 percent of Oman’s domestic gas production and gives Khazzan the status of one of the largest unconventional tight gas accumulations in the world.
The total project cost for both development phases is estimated at $16 billion.
Oman exports liquefied natural gas (LNG) to Spain, Japan and South Korea, but it still imports gas from Qatar to meet soaring consumption.
By James Burgess of Oilprice.com
More Top Reads From Oilprice.com:
James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…