Under the terms of the deal, more than 1,000km2 will be added to the south and west of the original 2,700km2 Block 61, which is operated by BP with 60% interest. Oman Oil owns 40% stake in the block.
BP said that the amended Oman Block 61 exploration and production sharing agreement will allow a second phase of development, which is subject to final approvals of the Oman Government and BP scheduled in 2017.
Oman Minister of Oil and Gas Dr. Mohammed Al Rumhy said: "I am delighted to see BP taking additional acreage that will result in realizing more gas reserves and more production of gas that our country needs to support our energy planning and requirements."
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 around 40% of total domestic gas production in Oman.
The first phase project is scheduled to commence production in late 2017 while the phase 2 is expected to produce first gas in 2020.
BP Group CEO Bob Dudley said: "Khazzan is a major resource with the potential to produce gas for Oman for decades.
"This expansion of its development will build on the success we are already seeing in our work on the first phase, working closely with our Omani partners and applying BP’s leading technology and extensive tight gas experience."
Image: The Khazzan field is estimated to produce 1.5 billion cubic feet of gas a day. Photo: courtesy of suwatpo/FreeDigitalPhotos.net.
