BP starts production from Khazzan gas field in Oman

MUSCAT, Sultanate of Oman — BP, together with the Ministry of Oil & Gas of the Sultanate of Oman, announced that production has begun from the giant Khazzan gas field, which is operated by BP in partnership with Oman Oil Company Exploration and Production.

Photo courtesy of BP.

BP expects to start-up seven upstream major 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 bbl of oil equivalent per day of production that BP expects to add by 2020.

The Khazzan tight gas reserves lie at depths of up to 5 km 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.

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.

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 Bcfd of gas.

Once the second phase of the Khazzan is fully up and running production is expected rise to 1.5 Bcfd. 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.

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% 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% of the total contract spend to date has been awarded to local oil and gas services companies.

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