Muscat: Natural gas production has started at Oman’s tight Khazzan gas field operated by BP, in partnership with the Oman Oil Company Exploration and Production.
The first phase of the Khazzan development is made up of 200 wells feeding into a two-train central processing facility, while the production is expected to plateau at 1 billion cubic feet of gas per day (bcf/d), said a press release. The project was completed ahead of schedule and below budget.
Once the second phase of the Khazzan gas field is up and running, production is expected rise to 1.5 bcf/d. Approximately, 300 wells are expected to be drilled over the estimated lifetime of the Khazzan field. The first two phases together will develop an estimated 10.5 trillion cubic feet of recoverable gas resources.
“I am delighted to see BP delivering Phase One of the Khazzan project within time and budget. This will result in realising more gas reserves and more production of gas that our country needs to support our energy planning and requirements,” said Dr. Mohammed Al Rumhy, minister of Oil and Gas.
“The start of production from Khazzan, BP’s sixth and largest major project start-up so far this year, is 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,” added Bob Dudley, group chief executive officer of BP.
BP expects to start-up seven major upstream projects in 2017, making it one of the most important years for commissioning new projects in BP’s history. These seven projects are expected to make a significant contribution to the 800,000 barrels of oil equivalent per day of production from new projects that BP expects to add by 2020.
“Khazzan further demonstrates BP’s ability to consistently deliver large, complex projects on schedule and within budget while applying the industry-leading skills and technology we have developed globally,” Dudley noted. “In this case, the tight gas techniques we perfected in the U.S. have been brought to Oman and we are very pleased with the results.”
The Khazzan tight gas reserves lie at depths of up to five kilometres in narrow bands of extremely hard, dense rock. These complex and challenging conditions require specialised drilling equipment, the precise drilling of both vertical and horizontal wells, and well stimulation to free the gas.
“While Oman has a vast set of resources and human capabilities, BP brings its technology to help unlock that potential. This increment of gas supplies will provide feedstock for the development of downstream and petrochemical industries,” said Isam bin Saud Al Zidjali, chief executive officer of Oman Oil Company.
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. An appraisal conducted over the 2007-2013 period 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.
Drilling efficiency has increased significantly during the development of the project. The average time to drill and complete a vertical well was reduced by 27 per cent and a record time of 60 days was achieved for completion of one well.
While BP provided advanced seismic, hydraulic fracturing and well design expertise, many local Omani businesses contributed to the Khazzan Project. In fact, approximately 38 per cent of the total contract spend to date has been awarded to local oil and gas services companies.
BP is the Operator of Block 61 and holds a 60 per cent interest. The Oman Oil Company for Exploration and Production holds a 40 per cent interest.