BP and Oman Oil Company Exploration & Production have signed extended licensing agreement for further development of the Khazzan tight gas field located in Block 61 in Oman.
The field, which is estimated to cost $16bn, is expected to produce 1.5bn cubic feet of gas per day through development of 10.5tn cubic feet of recoverable gas resources. It is being developed in two phases.
The deal signed with the Oman government amends the Oman Block 61 exploration and production sharing agreement (EPSA) to extend the license area which would lead to the second development phase of the field.
The license area extension will add more than 1000km2 to the south and west of the original 2,700km2 of Block 61.
BP operates the Block 61 with 60% stake while Oman Oil Company Exploration & Production owns the remaining 40% interest.
Scheduled to commence production in 2017, the Khazzan reservoirs in Block 61 is one of the largest unconventional tight gas accumulations in the Middle East.
The second phase of the Khazzan Phase 2 project, which is subject to final approval, is expected to commence production around 2020.
