BP Oman expects Khazzan gas production to start in late 2017

BP Oman said Phase 1 of its massive Khazzan natural gas project in the desert 350 km south of Muscat is 80% complete and on track to start gas deliveries in late 2017. The tight gas project began in 2014 and is expected to eventually contribute about 33% of Oman’s gas supply.

Most of the infrastructure already is in place, including roads, power lines, and a 60-km water pipeline from Hanya. Equipment installation is under way for a two-train central gas processing plant.

The water treatment plant, waste management area, and electricity substation also have been completed along with accommodation units for the construction workforce of as many as 12,000.

The Khazzan drilling program is on track with 38 of the 50 wells needed by first gas already drilled. More than 300 wells eventually will be drilled.

BP Oman operates Block 61 with about 60% interest. Oman Oil Co. Exploration & Production holds the remaining interest. Khazzan’s Phase 1 is expected to produce 1 bcfd. The combined plateau production from Phases 1 and 2 is expected to be 1.5 bcfd.