The Khazzan natural gas field located in Ad Dhahirah Governorate, Oman, was discovered in 2000 and is the biggest new upstream project in Oman. The field is situated about 350km southwest of Muscat and can be accessed via a desert road from Qarn Alum in the south or Fahud in the north.
"Construction on the field development is planned to be launched in 2014 and first gas is expected in 2017."
Construction on the field development is planned to be launched in 2014 and first gas is expected in 2017. The initial production rate is expected to be approximately one billion cubic feet/day.
The project is owned jointly by BP Oman (60%) and Oman Oil Company Exploration and Production (OOCEP, 40%), and is operated by BP Oman. The total investment on the project is estimated to reach about $16bn, including $9.6bn investment by BP. The final investment decision on the project is expected in 2014.
The field is expected to produce one billion cubic feet of gas and 25,000 barrels of gas condensate on a daily basis.
Location and reserves of the Khazzan gas field
The Khazzan gas field is located in the South of Block 61 at the Ad Dhahirah Governorate of Oman.
The field is estimated to contain proven reserves of about 100trillion cubic feet of natural gas and condensates as of 2012.
Khazzan gas field development details
BP Oman signed an agreement with the Government of Oman to develop the Block 61 and the Khazzan and Makarem gas fields in January 2007. The agreement covers about 2,800km2 in central Oman, which is rich in tight gas reservoirs that were first discovered in 1990s.
"The field development plan includes a 15-year drilling programme involving 300 wells in total."
The field development plan includes a 15-year drilling programme involving 300 wells in total. Most of the wells will be drilled horizontally by using eight drilling rigs, due to the tight nature of the rocks in Khazzan reservoirs.
The drilling activities were commenced in September 2008. BP drilled 11 wells, including three horizontal wells, so far. The first gas from Block 61 test well was achieved and delivered to the Oman's Saih Rawl gas plant in March 2011.
The first development well drilled at the field was the KZN-14, which was drilled by Dalma-5 rig in September 2013. It is the first of several hundred development wells to be spudded in the block.
The project will also include construction of a new central processing facility with a designed processing capacity of 1,050 cubic feet of gas, 100km of export pipelines, 600km of flowlines, and other gathering systems.
The produced gas will be transferred to the processing facility in Block 61 via a 500km long gathering system. Construction of the gas gathering pipeline network is expected to start by early 2014.
Contractors involved with BP's Khazzan gas field development
The Ministry of Oil and Gas (MOG) of Oman signed a gas sales and an amended production sharing agreement with BP for the development of the Khazzan field in December 2013. The agreements will be valid for the next 30 years and will also provide for additional appraisals for future discoveries within Block 61.
BP contracted Dalma Energy to supply two drilling rigs for the Khazzan field development.