BP Oman’s Khazzan natural gas project to deliver first gas by late-2017

BP Oman said that the Phase I of Khazzan natural gas project is 80% complete and set to deliver its first gas by the end of next year.

The project is expected to produce one billion cubed feet of gas per day during this phase.

Work on the Khazzan tight gas project is located on a previously undeveloped desert site 350km south of Muscat and began in 2014.

The completed development is expected to contribute roughly one-third of Oman’s natural gas supply.

BP said that the vast majority of the infrastructure, including 56km of roads, power lines and a 60km water pipeline from Hanya, is already in place.

Foundations and structures have also been laid and equipment installation is underway for the two-train central gas processing facility. The company also completed water treatment plant, waste management area and electricity substation.

BP Oman president Yousuf Al Ojaili said: “Our aim is for first gas to be flowing by the end of 2017, representing a significant moment for Oman, with the gas that comes from Khazzan substantially increasing our country’s overall supply and supporting greater diversification of Oman’s industrial base.

“Reliable gas supplies are needed for the country’s power sector and energy-intensive industries.”

The drilling programme for the Khazzan project is also on track and 38 of the 50 wells that are needed by first gas are already drilled.

More than 300 wells are planned to be eventually drilled over the project's lifetime.

BP Oman is the project's lead partner with a 60% interest, while the remaining 40% interest is held by Oman Oil Company Exploration & Production.

The Government of the Sultanate of Oman and BP signed a gas sales agreement and an amended production sharing agreement in December 2013 for the development of the Khazzan Project in Block 61.

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Image: BP Oman’s Khazzan natural gas project is located on a previously undeveloped desert site 350km south of Muscat. Photo: courtesy of BP p.l.c.