Imports to continue
The total production of natural gas, according to Eng. Al Aufi, is estimated at 105 million cubic metres and the Khazzan project will supply one-third of the production. Eng Al Aufi also noted that the import of natural gas from Dolphin Gas will continue as it is supplying to industrial units in Sohar. The government is not in a position to sell gas at a cheap price now. Although several investors are interested in setting up gas-based industries in Oman, they need gas at a lower rate, which is a hindering factor for proceeding with their plan. The government is not in a position to lower prices of natural gas.
The undersecretary also noted that natural gas supply to Duqm will start in 2019 and the volume is estimated at 7 million cubic meters a day. However, this can be increased to 28 million cubic metres a day.
Referring to tendering of four blocks, he said one of the four blocks has tight gas reserves.
The Khazzan tight gas reserves lie at depths of up to five kilometres in narrow bands of extremely hard, dense rock. These complex and challenging conditions require specialised drilling equipment, the precise drilling of both vertical and horizontal wells, and well stimulation to free the gas.
The production sharing agreement for Block 61, which contains the Khazzan field, was first signed in 2007 and was amended in 2013 and extended in 2016. An appraisal conducted over the 2007-2013 period confirmed the existence of significant tight gas resources that could be developed through the application of BP’s extensive unconventional gas experience and technology.