• 19 mins Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 7 hours Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 12 hours British Utility Companies Brace For Major Reforms
  • 16 hours Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 18 hours Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 19 hours Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 20 hours OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 21 hours London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 22 hours Rosneft Signs $400M Deal With Kurdistan
  • 1 day Kinder Morgan Warns About Trans Mountain Delays
  • 1 day India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 1 day Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 2 days Russia, Saudis Team Up To Boost Fracking Tech
  • 2 days Conflicting News Spurs Doubt On Aramco IPO
  • 2 days Exxon Starts Production At New Refinery In Texas
  • 2 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 3 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 3 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 3 days China To Take 5% Of Rosneft’s Output In New Deal
  • 3 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 3 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 3 days VW Fails To Secure Critical Commodity For EVs
  • 3 days Enbridge Pipeline Expansion Finally Approved
  • 3 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 3 days OPEC Oil Deal Compliance Falls To 86%
  • 4 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 4 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 4 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 4 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 4 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 4 days Aramco Says No Plans To Shelve IPO
  • 6 days Trump Passes Iran Nuclear Deal Back to Congress
  • 7 days Texas Shutters More Coal-Fired Plants
  • 7 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 7 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 7 days Chevron Quits Australian Deepwater Oil Exploration
  • 7 days Europe Braces For End Of Iran Nuclear Deal
  • 7 days Renewable Energy Startup Powering Native American Protest Camp
  • 8 days Husky Energy Set To Restart Pipeline
  • 8 days Russia, Morocco Sign String Of Energy And Military Deals
Are Oil Markets Ready To Rally Again?

Are Oil Markets Ready To Rally Again?

The bullish set-up for oil…

BP to Develop $16 Billion Tight Gas Project in Oman

BP to Develop $16 Billion Tight Gas Project in Oman

Oman has seen its gas exports fall drastically due to growing domestic demand, but it hopes that a new deal agreed with BP will see production output rise enough to help maintain its desired rate of economic growth.

The $16 billion natural gas project will see BP drill around 300 wells over the next 15 years throughout a region of the Omani desert that contains huge reserves in a sandstone formation about 4.5 kilometres below the surface.

The Khazzan tight gas project, as it is called, will extract a predicted one billion cubic feet of gas a day.

Related article: China’s Sinopec Eyes Stake in Canadian LNG Project

Mohammed Al Rumhy, the Omani Oil and Gas Minister, announced that “today’s signing is an important step in the Sultanate of Oman's plans to meet growing demand for energy over the coming decades and to contribute to economic development in Oman.

The Khazzan project is the largest new upstream project in Oman and a pioneering development in the region in unlocking technically challenging tight gas through technology.

The country needs the gas to develop its economy. Our needs for gas increase day by day.”

BP will use its expertise in hydraulic fracturing to develop tight gas trapped in sandstone. It plans to invest about $9.6 billion to develop the project, of which it owns a 60% stake. The other 40% is controlled by the state-owned Oman Oil Company Exploration & Production.

A price has finally been agreed with BP for the gas that they manage to extract, and whilst it has not been revealed, Bob Dudley, BP’s Chief Executive, has said that it was competitive with BP’S global investment portfolio.

Related article: Shell and GE Team Up for ‘Age of Gas’

“We are a company who have said that we will use a very disciplined capital framework and for the rest of the decade we will keep BP's capital investments between $24 and $27 billion a year.

There are other projects that we have put aside but this is one that is big, it is important and it is a good partnership... It fits with our strategy as a company to develop large reservoirs.”

Construction on the project is set to begin in 2014, with the first gas to be produced by the end of 2017.

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News