Oman: Gas Processing BP Starts Production at Khazzan Gas Field in Oman
BP announced that production has begun from the giant Khazzan gas field, which is operated by BP in partnership with Oman Oil Company Exploration and Production. The start of production from Khazzan is BP’s sixth and largest major project start-up so far this year.
Muscat/Oman — BP expects to start-up seven Upstream major projects in 2017. These seven projects are expected to make a significant contribution to the 800,000 barrels of oil equivalent per day of production that the company expects to add by 2020.
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 specialized drilling equipment, the precise drilling of both vertical and horizontal wells, and well stimulation to free the gas. The company uses techniques it has already been applying for tight gas reserves in the US.
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. Appraisal over 2007-2013 confirmed the existence of significant tight gas resources. The first phase of development of the field was sanctioned in December 2013.
Phase One of the Khazzan development is made up of 200 wells feeding into a two-train central processing facility. Phase One production is expected to plateau at 1 billion cubic feet of gas per day (bcf/d).
Once the second phase of the Khazzan is fully up and running production is expected rise to 1.5 bcf/d. In total, approximately 300 wells are expected to be drilled over the estimated lifetime of the Khazzan field. Phases One and Two will together develop an estimated 10.5 trillion cubic feet of recoverable gas resources.
The average time to drill and complete a vertical well was reduced by 27 % and a record time of 60 days was achieved for completion of one well, the company announced.
Approximately 38 % of the total contract spend to date has been awarded to local oil and gas services companies.
BP's major projects in 2017