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.

Times of Oman - - MARKE - A E JAMES

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.

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MAK­ING A POINT: Ap­prox­i­mately, 300 wells are ex­pected to be drilled over the es­ti­mated life­time of the Khaz­zan field.

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