Page 14 - MEOG Week 41

MEOG PROJECTS & COMPANIES MEOG

Oman’s Ghazeer project

launched ahead of schedule

OMAN BP has announced the launch of its Ghazeer The hydrocarbon business provides funding for
project in Oman, which is the second phase low carbon business and is absolutely aligned
of its plan to develop gas reserves in Block 61. with our net zero plans.”
The company is partnered by state-owned OQ, In June, BP Oman chairman Yousef bin
Malaysia’s Petronas and Oman’s Ministry of Mohammed Al-Ojaili said that production of
Energy & Minerals. gas from Khazzan had reached 1bcf per day. He
The announcement comes four months added that 126 wells had been drilled at Khazzan
ahead of schedule, with output now expected and Ghazeer, out of a planned 300 wells over 15
to ramp up to 0.5bn cubic feet (14.2mn cubic years.
metres) per day of gas in addition to the 1bcf Al-Ojaili noted that the company has so far
(28.3mcm) per day produced by the first phase proceeded with $9.3bn-worth of investments
project, Khazzan. A further 65,000 barrels per out of a target of $16bn planned for Block 61.
day of condensate will also be produced. He reaffirmed that BP Oman was intending to
BP commissioned Khazzan in late 2017 and develop its business towards the production of
took the final investment decision (FID) to pro- 10.5tcf (297bcm) from ‘renewable’ gas resources
ceed with Ghazeer the following year, targeting at Block 61.
additional reserves of 99bcm. The two phases are In 2016, BP and Oman Oil Company Explo-
expected to cost a combined $16bn. ration & Production (OOCEP) signed a revised
The company’s CEO, and former head of petroleum agreement with the Ministry of Oil
Upstream, Bernard Looney said on his Linke- and Gas to expand the concession area in Block
dIn profile that “the sense of achievement [is] 61 for the Khazzan project to ensure its develop-
immense”. ment through well-controlled quotas.
“The Khazzan gas development in Oman’s He explained that, as per the agreement, the
Block 61 is a tremendous feat of engineering. expansion would extend the concession area of
And the gas is up to 5km below the surface in Block 61 south and west by around 1,000 square
narrow bands of hardened, dense rock.” km, to be added to the project’s existing area of
Turning to the company’s recent strategic roughly 2,700 square km.
shift, Looney said: “When we introduced our The expansion will enable BP to start the sec-
plans to reinvent bp, we were clear that to deliver ond phase of developing the field in order to get
them we have to perform as we transform. There additional resources of gas in the area demar-
are few better examples of how we are doing just cated during exploratory drilling operations.
that than Ghazeer.” BP Oman holds a 60% stake in Block 61 and
Meanwhile, BP’s executive vice president is the operator, while OQ holds 30% Petronas
of production and operations Gordon Birrell holds 10%.
was quoted by Energy Voice as saying: “This is The super-major is reported to have been
another example of our business performing holding talks with Chinese companies during
while transforming [and] underpins our finan- the last few months regarding the potential farm-
cial framework and is absolutely central to BP. down of its 60% holding.™

P14 www. NEWSBASE .com Week 41 14•October•2020