British energy giant BP has announced that it has signed an agreement with Oman for two commercial gas processing and sales deals, the news gathering agency Zawya Dow Jones reported.
The deals mean that Oman will be able to divert gas to domestic consumers thus reducing any potential flaring. The deal makes up part of six year exploration and production sharing agreement the company signed with Oman in 2007 for the Khazzan and Makarem gas fields.
“There was a gas processing agreement and gas sales agreement,” a BP spokesperson told Zawya Dow Jones. “Gas production from early well testing is expected to start by mid-2010.”
The news agency also reported that any appraisal gas from BP’s early well testing will be fed into Oman’s domestic network. BP said that instead of flaring the test gas it will be processed.
“This will be the first time gas is not being flared and will help boost supply at times of increased demand,” the spokesperson told Zawya Dow Jones.
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