BP Khazzan project on track for first gas

FINAL TARGET: 50th well successfully drilled and completed in Block 61 Khazzan field –

Business Reporter –
MUSCAT, MAY 23 –
BP yesterday announced that it has reached a significant milestone in the development of the Khazzan gas project with the successful drilling and completion of the 50th well at the large gas field in Block 61.
This is the final well targeted for completion enabling first gas to be delivered later this year.
These first 50 wells will enable production of 1.0 billion cubic feet of gas a day (bcf/d) to be achieved from first gas onwards and delivered to the Sultanate of Oman. This will rise to 1.5 bcf/d once the second phase of the Khazzan project is fully up and running in 2020. A total of over 300 wells will be drilled over the estimated lifetime of the Khazzan project. The Khazzan gas reserves lie at depths of up to five kilometres in narrow bands of extremely hard, dense rock.
These complex and challenging conditions require specialist cutting and drilling equipment, the drilling of both vertical and horizontal wells, stimulation technologies to free the gas, as well as accuracy and efficiency.
Local Omani businesses have provided rigs, stimulation and drilling support, with BP bringing to bear its advanced seismic, hydraulic fracturing and well design expertise.
Omani firms have won drilling contracts valued at 85 per cent of the total spend at Khazzan and 60 per cent of overall well services contracts.
Drilling efficiency has increased significantly in the three years since drilling began with the average time to drill and complete a vertical well reduced by 27 per cent. A record time of 60 days was recently achieved for completion of one well.
Paul Forman, BP Oman Vice President in charge of wells, stated: “This is a big day for all of us involved in the Khazzan project and is testament to what can be achieved by integrating wells and reservoir understanding and working collaboratively with our suppliers and subject matter experts in BP.
Our local Omani contractors have been an essential part of this success, offering products and services from rig management and drill bits to well interventions.”
BP is the Operator of Block 61 and holds a 60 per cent interest.
The Oman Oil Company for Exploration & Production holds a 40 per cent interest. In 2016, BP signed an agreement with the Government of the Sultanate of Oman committing to amend the Oman Block 61 exploration and production sharing agreement (EPSA). This has added a further 1,150 km2 to the south and west of the original 2,800 km2 Block 61 development, allowing a second phase of development known as Ghazeer. Phase 1 (Khazzan) is on track to deliver first gas by end 2017 producing 1.0 billion cubic feet of gas a day (bcf/d). Combined plateau production from Phases 1 (Khazzan) and 2 (Ghazeer) is expected to be 1.5 billion cubic feet of gas a day (bcf/d).