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BP Oman’s investment in Ghazeer gas field to top $4 billion


Muscat, March 30 - BP Oman says it expects investment in the Ghazeer gas field, representing the second phase of its landmark tight gas development in Block 61 in central Oman, to top $4 billion over the life of the project. Progress on Ghazeer, which will boost natural gas output from Block 61 to 1.5 billion cubic feet (bcf) per day from early 2021 — up from 1 bcf/day presently — is making excellent headway, according to Yousuf al Ojaili , President — BP Oman. “We are making good progress on Ghazeer, with contracts worth $1.5 billion in facilities costs signed so far on Ghazeer, not including the drilling and well services costs. The total life of project cost is very close to $4 billion,” Al Ojaili said.

Phase 1 of BP Oman’s tight gas development in Block 61 — targeting the Khazzan field — came on stream in September 2017, with production averaging 1 bcf of gas along with around 25,000 barrels per day (bpd) of condensate.

“We are ahead of schedule in the implementation of Ghazeer — by about 10 per cent — and we plan to bring it on stream by Q1 2021, if not earlier. By then we will produce 42 million cubic metres per day of gas and 50,000 bpd of condensate from both Khazzan and Ghazeer, through the development of about 10.5 trillion cubic feet (TCF) of gas reserves,” the official said.

Yousuf al Ojaili , President — BP Oman[/caption]

As part of its investment in Ghazeer, BP Oman is adding a third gas processing train to the central processing facilities (CPF) in Block 61, along with a second condensate train, gathering systems, well hookups, and a new gas export system connecting with Oman Gas Company’s network in Fahud.

As of end-2018, around 45 per cent of the gas processing infrastructure associated with the Ghazeer development was complete, BP Oman’s President said. Progress is also being made in the drilling of 15 of the 100 wells expected to be drilled over the life of the project. When operational by the early part of 2021, Ghazeer will contribute 14 million m3/day of gas (0.5 bcf/day) and 25,000 bpd of condensate, he noted.

Further, as part of its support for In-Country Value (ICV) development and localisation efforts, BP Oman awarded contracts worth $1.1 billion to locally registered Omani companies in 2018, said Al Ojaili.

He also announced plans to support the entry of a local Omani company into the complex fracking process at the heart of BP Oman’s Khazzan — Ghazeer tight gas development. Fracking (also known as hydraulic fracturing) is described as a well stimulation technique designed to unlock gas trapped in tiny holes in the ‘tight’ rock of the reservoir. The process involves the use of a ‘fracking fluid’ to be injected at high pressure into the wellbore to create cracks in the reservoir formations, and allow the trapped gas to flow.

Abraj Energy Services — a wholly-owned drilling and well services subsidiary of Oman Oil & Orpic Group — will be given the opportunity to be part of BP’s fracking operations in Block 61, said Al Ojaili.

“I’m very happy to announce the launch of a major vendor development programme in which BP is ready to work with Abraj Energy on developing Abraj for the complex fracking business in Oman. We will work with them to be part of the fracking business in Oman,” he added.

BP Oman is a partnership of energy major BP (60 per cent), Oman Oil Company E&P (30 per cent) and Malaysian energy giant Petronas (10 per cent).

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