BP Oman starts drilling of first well targeting Ghazeer gas field

GROWING PRESENCE: Energy major grows its Oman portfolio to six business streams

Energy major BP has announced that it has commenced the drilling of its first development well targeting tightgas reserves in the Ghazeer field of its Block 61 concession in central Oman.

The Ghazeer development represents the second phase of an estimated $16 billion investment that BP is making in unlocking the block’s prodigious tight-gas potential over the life of the project. Phase 1 of the programme, targeting the Khazzan field, came into operation last September and currently produces 1 billion cubic feet (bcf) of natural gas per day.

According to Yusuf al Ojaili, President of BP Oman, the first of many development wells envisioned as part of the Phase 2 development of the block is currently being drilled. It follows a Final Investment Decision (FID) taken by BP along with its joint venture partner Oman Oil Company, to proceed with the development of Phase 2. First gas from Ghazeer is targeted by 2021 with output projected to climb to 1.5 bcf/day, he said.

Significantly, gas production from Block 61 is one of six business streams that form part of BP operations in the Sultanate, according to Al Ojaili. Besides marketing lubricants, the company has also begun supplying calcined petroleum coke to Sohar Aluminium, which operates a major smelter in Suhar, he said.

Calcined petroleum coke is a high purity carbon material produced by heating green petroleum coke to drive off moisture, volatile matter, and impurities and to increase its electrical conductivity. The primary aluminium industry is the major consumer of calcined petroleum coke, representing approximately 80 per cent of the total demand, say experts.

Calcined coke supplies to Sohar Aluminium commenced last year, said Al Ojaili.

Earlier this year, BP’S Singapore subsidiary inked a landmark deal with Oman LNG to import liquefied natural gas (LNG) from the Qalhat complex. Under a Sales and Purchase Agreement concluded with BP Singapore Pte Ltd, the latter will lift 1.1 million tonnes per annum (mtpa) of Omani LNG — equivalent to 18 LNG cargoes annually — over a period of seven years.

The Ghazeer development represents the second phase of an estimated $16 billion investment that BP is making in unlocking the block’s prodigious tight-gas potential over the life of the project.