BP Oman brings Khazzan gas field on stream

BP Oman said production has started from Phase 1 of Khazzan field in the Oman desert 350 km south of Muscat. BP, the operator, expects to drill about 300 wells during the field’s life. Combined production from Phases 1 and 2 is expected to be 1.5 bcfd.

BP has 60% interest. Partner Oman Oil Co. Exploration & Production holds 40% (OGJ Online, Oct. 25, 2016).

Liam Yates, Wood Mackenzie Ltd. analyst for the Middle East and North Africa upstream, said Khazzan Phase 1 is expected to supply 25% of Oman's gas by 2019.

Oman's gas production likely will increase by 25% during 2016-19, Yates said. He also expects Khazzan to support incremental liquified natural gas exports of 1.5 tonnes/year.

Longer term, Khazzan will help replace declining Oman production, particularly from Petroleum Development Oman, which currently produces more than 90% of Oman's gas.

Yates said Phase 1 is expected to cost $12 billion, a 25% reduction from the original development plan. Phase 2 of BP’s Block 61 project is expected to start up by 2020.