Khaz­zan and Ghazeer: Mak­ing a sig­nif­i­cant con­tri­bu­tion

The Khaz­zan and Ghazeer de­vel­op­ments are ex­pected to de­liver to­tal pro­duc­tion of 10.5 tril­lion cu­bic feet of gas and around 350 mil­lion bar­rels of con­den­sate through the end of con­ces­sion

Oil and Gas - - CONTENT -

BP Oman is the op­er­a­tor of the largest un­con­ven­tional gas project in the Mid­dle East – a gas project called Khaz­zan that pro­duces a sig­nif­i­cant sup­ply of Oman’s gas. Af­ter four years of field de­vel­op­ment, First

Gas from Khaz­zan was de­liv­ered on time and un­der bud­get in Septem­ber 2017.

Khaz­zan cur­rently de­liv­ers around 1 bil­lion cu­bic feet of gas a day, which is fed into the gov­ern­ment gas pipe­line in­fra­struc­ture for dis­tri­bu­tion, and

25,000 bar­rels of con­den­sate each day. The drilling of wells con­tin­ues apace with over 200 re­quired in to­tal over the life­time of the project. Col­lec­tively,

BP’s op­er­a­tions in Oman make a sig­nif­i­cant and var­ied im­pact on the lo­cal econ­omy; work with Omani com­pa­nies ac­counts for 42 per cent value of awarded con­tracts and 70 per cent of the work­force is Omani, with aim to reach 90 per cent by 2025.

In April 2018, BP sanc­tioned the sec­ond phase de­vel­op­ment of the Khaz­zan gas field. Around 3.5 tril­lion cu­bic feet of ac­ces­si­ble gas and 175 mil­lion bar­rels of con­den­sate are es­ti­mated to ex­ist at the Ghazeer ex­ten­sion which ad­joins Khaz­zan to the south west. Around100 wells will be drilled over the project life­time to ac­cess it. The Ghazeer project is ex­pected to come on­stream in 2021 and de­liver an ad­di­tional 0.5 bil­lion cu­bic feet per day and over 15,000 bar­rels of con­den­sate per day.

In Fe­bru­ary 2018, Ghazeer’s first de­vel­op­ment well suc­cess­fully spud­ded, an im­por­tant land­mark fol­low­ing the rig­or­ous test­ing of appraisal wells. Re­sults from this well will help in gath­er­ing the re­quired sub-sur­face data to un­der­stand the reser­voir struc­ture and gas pro­duc­tion po­ten­tial from the field as a whole. Drilling op­er­a­tions con­tinue, with a to­tal of three rigs be­ing de­ployed at Ghazeer to de­liver nine ver­ti­cal wells in 2018, of which eight have al­ready been drilled. In to­tal, Ghazeer re­quires com­ple­tion of 24 well sites to reach First Gas.

The teams at Ghazeer re­cently cel­e­brated break­ing a new record in de­liv­er­ing a well in just 48 days, com­pared to the av­er­age 120 days when work first be­gan four years ago.

A key fac­tor con­tribut­ing to the project’s con­tin­ued suc­cess is the learn­ings be­ing taken from Khaz­zan’s jour­ney to First Gas. A strong safety cul­ture es­tab­lished from con­duct­ing work at Khaz­zan has en­abled po­ten­tial haz­ards at Ghazeer to be elim­i­nated early on. Reg­u­lar safety and en­vi­ron­ment fo­rums, bring­ing to­gether lead­er­ship and con­trac­tors, has fur­ther in­stilled the safety cul­ture in both BP and con­trac­tor staff.

A repli­cated de­sign ap­proach from Khaz­zan to Ghazeer has also given an early boost to con­struc­tion in the field, which is cur­rently at 33 per cent com­ple­tion. All con­struc­tion work is be­ing ex­e­cuted in a pre­cise se­quence based on pre­vi­ously planned lo­gis­tics at Khaz­zan, which has greatly im­proved the pace of con­struc­tion ac­tiv­ity.

Con­struc­tion work is un­der­way to con­struct roads lead­ing to the wells, and pipe­line and well site con­struc­tion is sched­uled to be­gin next year. Work is also un­der­way to build a third gas pro­cess­ing train, that will be added to the CPF to han­dle the in­creased vol­ume of gas, which, when com­bined with Khaz­zan, will to­tal 1.5 bil­lion cu­bic feet of gas a day. The site has cur­rently has over 1,500 per­ma­nent and tem­po­rary work­ers on site and this num­ber is ex­pected to in­crease to al­most 4,000 work­ers at peak per­for­mance.

Ear­lier this year, BP Oman reached an agree­ment with Oman LNG to boost the LNG mar­ket by pro­vid­ing 1.1 mil­lion tonnes of gas over a seven-year pe­riod to BP Sin­ga­pore. The agree­ment is a con­tin­u­a­tion of the strong part­ner­ship be­tween Oman LNG and BP and will be a sig­nif­i­cant boost to the global LNG mar­ket, equat­ing to ap­prox­i­mately 18 LNG car­goes an­nu­ally.

The to­tal life­time cap­i­tal ex­pen­di­ture for the Khaz­zan and Ghazeer gas fields is es­ti­mated at $16 bil­lion, with some 300 wells be­ing drilled through the es­ti­mated op­er­a­tion age for the two stages. The Khaz­zan and Ghazeer de­vel­op­ments are ex­pected to de­liver to­tal pro­duc­tion of 10.5 tril­lion cu­bic feet of gas and around 350 mil­lion bar­rels of con­den­sate through the end of con­ces­sion.

Ghazeer’s first de­vel­op­ment well suc­cess­fully spud­ded, an im­por­tant land­mark fol­low­ing the rig­or­ous test­ing of appraisal wells. Re­sults from this well will help in gath­er­ing the re­quired sub-sur­face data to un­der­stand the reser­voir struc­ture and gas pro­duc­tion po­ten­tial from the field as a whole

Newspapers in English

Newspapers from Oman

© PressReader. All rights reserved.