BP said Sunday it has reached an agreement with Oman Oil and the government of Oman that would facilitate further development of the Khazzan gas field.
The agreement will expand the operating license relating to Oman Block 61 that is detailed within the exploration and production sharing agreement (EPSA).
“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,” Oman Minister of Oil and Gas Mohammed Al Rumhy said.
The agreement adds approximately 386 square miles to the south and western portions of the field and will allow for a second phase of development of the natural gas field. BP said the Khazzan reservoir is one of the largest collections of unconventional tight gas material in the Middle East. BP has a 60 percent interest in the project and Oman Oil currently holds 40 percent.
“Khazzan is a major resource with the potential to produce gas for Oman for decades,” BP Group CEO, Bob Dudley said. “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. It clearly demonstrates our commitment to continue to invest in a superior project that will deliver long-term value to both BP and Oman.”