BP gas can be channelled across Oman, even exported

BP Oman’s sprawling gas processing facilities in central Oman are being integrated with existing gas transportation networks to enable the delivery of natural gas from Block 61 not only to all parts of the Sultanate, but potentially to export markets in the future as well.

First gas from Phase 1 of the company’s project targeting the Khazzan gas field is anticipated to flow before the end of this year at the rate of 0.5 billion cubic feet (bcf) per day. By the first quarter of 2018, production is expected to be ramped up to 1 bcf per day.

Given the prodigious size of this output — equating to around 40 per cent of the nation’s current gas production — BP’s Block 61 facilities have been suitably tied into the country’s two main gas grids operated by Petroleum Development Oman (PDO) and Oman Gas Company (OGC) respectively. The measure will enable BP gas to be supplied anywhere around the Sultanate, and potentially beyond as well, according to a top executive of the company.

“Theoretically, Khazzan gas can be supplied anywhere around the country,” said Yousuf al Ojaili (pictured), President – BP Oman. “As it will tap into the PDO network and OGC network, the gas can go to the Oman LNG plant and to Duqm when the new pipeline is commissioned. It can also go north via the PDO network, and south via the pipelines of PDO and OGC.”

Additionally, BP gas can also be exported, if authorised and required by the government, via the bidirectional pipeline operated by OGC as part of the Dolphin Network, he remarked. BP Oman’s head made the comments during a presentation on Oman’s gas market at the executive committee meeting of the International Gas Union (IGU), which concluded in Muscat last Thursday.

Earlier, giving an overview of BP’s flagship project in the Sultanate, centring on the development of tight gas reservoirs in Block 61, Al Ojaili said the production of first gas from the concession, anticipated before the end of this year, marked the culmination of a 10-year journey that began in 2007 when BP began to appraise the Khazzan and Makarem fields. Recently, the scope of the concession was expanded to include the Phase 2 Ghazeer development.

“With the extension, the new block is about 4,000 sq km, and we expect to invest $16.5 billion over the lifetime of the project. We will be developing 10.5 tcf (trillion cubic feet) of gas this year over Phase 1 and Phase 2,” said Al Ojaili. “Once Phases 1 and 2 are developed we expect to be pumping around 40 per cent of the current gas volumes into the Oman gas network operated either by PDO or OGC.”

In his address, Al Ojaili described the Phase 1 facilities developed by BP Oman as “massive”. It includes 300 wells targeting the Barik reservoir, more than 400 kilometres of pipelines and gathering systems, plus two processing trains, one of which is currently under pre-commissioning. The second train will be launched either before the end of this year or early in 2018, he said.

Preparations are also under way for the execution of Phase 2 centring on the Ghazeer development, said Al Ojaili. A third train will be added to the complex as part of this phase. “When Phase 2 is completed by 2020, we will be producing 1.5 bcf per day of gas,” he added.

Condensate production, estimated at 25,000 barrels per day during Phase 1, will be significantly ramped up as well.