BP Oman has announced that the first phase of the $16bn Khazzan natural gas project located in the South of Block 61 in Oman is nearing completion.

The first phase of the project, which is being developed in two phases, is currently 80% complete. It is scheduled to commence production by the end of 2017.

BP expects the Khazzan 1 and 2 phases to jointly produce approximately 1.5 billion cubic feet of gas a day (bcf/d), which is equivalent to third of total domestic gas production in Oman.

According to estimates made in 2012, the field holds proven reserves of about 100 trillion cubic feet of natural gas and condensates.

BP Oman president Yousuf Al Ojaili said: “Our aim is for first gas to be flowing by the end of 2017, representing a significant moment for Oman, with the gas that comes from Khazzan substantially increasing our country’s overall supply and supporting greater diversification of Oman’s industrial base.

“Reliable gas supplies are needed for the country’s power sector and energy intensive industries.”

BP operates the Block 61 with 60% interest while Oman Oil Company Exploration and Production owns the remaining 40% stake.

The project involves drilling of more than 300 wells over its lifetime, including 50 wells to produce first gas.

Earlier this year, BP and Oman Oil signed an agreement with the Government of Oman to extend the scope of Khazzan field, facilitating development of second phase.

Under the amended agreement, the license area of Block 61 will be extended by more than 1000km² to the south and west of the original 2,700km² of the block.

Image: The Khazzan gas field in Oman is estimated to hold proven reserves of about 100 trillion cubic feet of natural gas and condensates. Photo: courtesy of BP p.l.c.