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BP, Oman Oil Company approve Ghazeer development

BP and partner Oman Oil Company Exploration and Production have approved the development of Ghazeer, the second phase of the giant Khazzan gas field in Oman.

The final investment decision (FID) for Ghazeer follows the startup of Khazzan’s first phase of development in September 2017. This project, which started production ahead of schedule and under budget, is now producing at design capacity of around 1 bcf/day and around 35,000 bpd of condensate.

Yousuf Al Ojaili, President of BP Oman, said, “Following the successful start-up of Khazzan, we are pleased to announce the sanction of Ghazeer, BP’s first project FID of 2018. Through the transfer of industry-leading skills and technology from BP’s global portfolio, we look forward to further developing this gas field that is expected to support Oman’s energy needs for many decades to come.”

The Ghazeer project is expected to come onstream in 2021 and deliver an additional 0.5 bcf/day and over 15,000 bpd condensate production. Drilling on the first three development wells has begun, following appraisal drilling on Ghazeer last year. Initial construction work has already started at Khazzan to accommodate a third gas train and associated infrastructure.

The Khazzan and Ghazeer developments are expected to deliver total production of 10.5 tcf of gas and around 350 million bbl of condensate through the end of concession.

BP is the operator of Block 61 and holds a 60% interest. Oman Oil Company Exploration and Production holds the remaining 40% interest.

In December 2013, the government of the Sultanate of Oman and BP signed an amended exploration production sharing agreement (EPSA) for the development of the Khazzan Project for Block 61. The agreement was ratified in February 2014 by a royal decree issued by His Majesty Sultan Qaboos bin Said. The concession runs to 2043.

In 2016, BP signed an agreement with the government of the Sultanate of Oman to amend the Oman Block 61 EPSA. This has added a further 1,150 sq km to the south and west of the original 2,800sqkm Block 61 development, allowing a second phase of development known as Ghazeer.

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