BP to drill 100 wells in second phase of Block 61 development
The total investment for two phases — Khazzan and Ghazeer — of the tight gas field is estimated at $16 billion for the lifetime of the project until 2040.
MUSCAT: BP Oman plans to drill 100 wells in the second phase of block 61 tight gas development, a senior official of the company said.
The British company will make a final investment decision by early next year for the second phase development, said Eng. Yousef Al Ojaili, president, BP Oman. The total investment for two phases – Khazzan and Ghazeer – of the tight gas field is estimated at $16 billion for the lifetime of the project until 2040. BP on Friday started natural gas export from its tight Khazzan gas field, which is operated by the company in partnership with the Oman Oil Company Explora- tion 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). The project was completed ahead of schedule and below budget.
The first gas processing train at Khazzan field has already started operation, while the second train will start operation towards the end of this year.
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.
Eng. Salim bin Nasser Al Aufi, undersecretary at the Ministry of Oil and Gas, said that BP’s Khazzan gas field will pump one-third of the Sultanate’s natural gas demand and there will be a surplus in production in the short run. “This project will help us to continue our commitment. For a short period, we will have surplus gas. This will be marketed by way of short-term contracts,” added Eng Al Aufi.
Eng. Al Aufi said that the surplus production will be used for meeting the 25 per cent spare capacity with Oman LNG. However, only 15 per cent of Khazzan production is required for producing liquefied natural gas and the rest is for local consumption. Petroleum Development Oman can slowdown its natural gas production.
MAKING A POINT: Approximately, 300 wells are expected to be drilled over the estimated lifetime of the Khazzan field.