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BP Begins Tight Gas Production In Oman

Muscat

Tight gas production techniques perfected in the U.S. expected to deliver 1 Bcf/day to Sultanate of Oman; two-phase project targets 10.5 Tcf of natural gas — BP holds 60 percent interest, Oman 40 percent

BP has started producing natural gas from what it said is its largest project start-up in 2017. The Khazzan gas field, which is operated by BP in partnership with Oman Oil Company Exploration and Production, is the source of the new production.

(Click to enlarge)

Source: EIA

BP CEO Bob Dudley called the start of production “an important milestone in our strategic partnership with Oman. With further development already planned, this giant field has the potential to produce gas for Oman for decades to come.”

The Khazzan tight gas reserves lie at depths of up to five kilometers in narrow bands of extremely hard, dense rock. These complex and challenging conditions require specialized drilling equipment, the precise drilling of both vertical and horizontal wells, and well stimulation to free the gas, BP said.

Eng. Isam bin Saud Al Zidjali, CEO of Oman Oil Company said he is looking to see how this achievement is going to reflect on Oman’s economy. “This increment of gas supplies will provide feedstock for development of downstream and petrochemical industries.”

(Click to enlarge)

Source: BP

Block 61: home of the Khazzan field

The production sharing agreement for Block 61, which contains the Khazzan field, was first signed in 2007 and was 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. Related: Traders Are Betting On $100 Oil In 2018

Phase One of the Khazzan development is made up of 200 wells feeding into a two-train central processing facility. Phase One production is expected to plateau at 1 Bcf of gas per day, BP said in a statement.

Once the second phase of the Khazzan is fully up and running production is expected rise to 1.5 Bcf/day. In total, approximately 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 Tcf of recoverable gas resources.

BP said the average time to drill and complete a vertical well was reduced by 27 percent and a record time of 60 days was achieved for completion of one well.

BP is the Operator of Block 61 and holds a 60 percent interest. The Oman Oil Company for Exploration & Production holds a 40 percent interest.

By Oil and Gas 360

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