(MENAFN- Muscat Daily) On December 16, BP and the Government of Oman 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 15 years to deliver plateau production of 28.3mn m3 of gas per day and 25,000 barrels per day of gas condensate. This volume is equivalent to around a third of Oman's total daily domestic gas supply and will make a significant contribution to ensuring continuing stable supplies from domestic sources. BP launched a Technician Development Programme in 2012 - a multi-year development programme for Omani nationals.
Over 150 technicians will be recruited over the next five years to support the Khazzan Project. As one of the world's leading specialists in the production of tight gas, BP is applying innovative technology to unlock Khazzan's potential, drilling horizontal wells and using hydraulic fracturing technologies to stimulate production.
BP is applying innovative technology to unlock Khazzan's potential BP is one of the world's leading international oil and gas companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products for everyday items. BP has been operating in the Middle East for over 100 years.
We have developed successful partnerships with national oil companies in the Middle East, bringing unparalleled scope and scale, in terms of technology, project management, managerial experience, capital and access to global markets. In January 2007, BP signed an agreement with the government for the appraisal and development of the Khazzan and Makarem gas fields in Block 61. In March 2011 BP Oman achieved a major milestone with the first gas delivery to the government from its extended well test project in Block 61.
This successful pilot project has helped to demonstrate the potential of a much larger scale development. In 2012, BP completed testing of a horizontal well in the Amin reservoir and completed the drilling programme and began stimulation and testing of a horizontal well in the Barik reservoir. We also moved into the Define stage of the Khazzan Project surface facilities engineering and began early work with many of the potential future contractors for the project.
During 2013, BP issued around 627 purchasing agreements including contracts, purchase orders and service orders with a total value of approximately US$115mn across all areas of scope, with reasonable growth achieved in terms of total commitment with the local suppliers. With the sanction of the Khazzan Project, BP anticipates a step change in the amount of capital investment.
We will look for ways to optimize in-country value by identifying opportunities for local supplies BP's Khazzan Project entered the ‘Execute' stage in December 2013 following the signing of a Gas Sales Agreement and Amended Production Sharing Agreement with the government. Recently, BP has completed the KZN-13 vertical well as part of the continuing project appraisal and is currently drilling KZN-14 horizontal well as first development well.
BP is also making progress in placing major contracts for the delivery of Khazzan and mobilising its project team for the construction phase of the project. BP Oman supported a pilot scholarship scheme in 2012 to support eight Omani students to undertake Bachelors and Masters Degrees at UK universities.
It have also contributed to the development of Omani students through the BP Young Adventurers Programme – an adventure training and team building initiative, and have supported a summer school and handicrafts training project for women and children. While BP Oman was only appraising production in 2013, it continued to operate our pilot extended well test plant and produced an average of 21.6 mmscfd of gas, contributing in a small way to the energy needs of the sultanate.
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