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BP Oman Full Field Development phase-1 at bid stage

Block 61 among world largest tight gas development

2B1st_Project_Smart_Explorer_Sales_Pursuit_ToolIn January 2013, BP received the technical and commercial offers from the engineering companies bidding on the key packages of its Block 61 tight gas full field development phase-1 project in the Sultanate of Oman.

Last September, BP had announced to scale up its capital expenditure from $15 billion to $24 billion to develop and turn the complex fields such as Khazzam and Makarem of the Block 61 into production.

Located in the Al-Dahirah Governorate, at center west of Oman, the Block 61 covers 2,800 square kilometers as one of the world largest tight gas field currently under greenfield development.

Discovered in the 1990s, by 4,500 to 5,000 meters depth, this field is made of four main reservoirs, including Khazzam and Makarem, estimated to contain 20 to 30 trillion cubic feet (tcf) of natural gas.

bp_block_61_oman_Kharzzan_Makare_mapBecause of its complexity and remote location requiring advanced technology for production and heavy infrastructures for transportation, this Block 61 have been left untapped.

It is only in 2007 that the Sultanate of Oman and BP signed a production sharing contract (PSC) giving BP 100% of the working interests to explore and develop the Block 61.

Immediately in following Global Geophysical Services and PGS Data Processing ME performed an intensive campaign of 3D seismic data acquisition to detail the field and confirm its potential reserves.

In 2011, BP performed successfully the first horizontal well with hydraulic fracturing technique.

The first natural gas production was sent to the Saih Rawl gas central processing facility (CPF) engineered and constructed by  in Oman.

From these first tests BP awarded the pre-front end engineering and design (pre-FEED) and FEED work to WorleyParsons Oman to designed its Oman Full Field Development phase-1 program to produce 1 billion cf/d of natural gas during 25 years.

The hydraulic fracturing process used by BP requires a significant consumption of soft water to facilitate the tight gas production.

This soft water is loaded with chemical products to facilitate the gas mobility in the reservoir.

At the production well, this water is separated from the gas and requires a waste treatment by desalination.

Four bidders for Saih Rawl gas central processing plant

Therefore the BP Oman full Field Development phase-1 project has been designed with:

(FILES) This file picture taken on May 1 – Fracturing equipment

 – Well testing facilities

 – 500 kilometers of flowlines

 – Central Processing facilities

 – Gas processing plant with 1.2 billion cf/d capacity

 – 100 kilometers export gas pipeline

 – Infrastructures

 – Waste water treatment facility

In January 2013, BP received the tenders for the engineering, procurement and construction (EPC) contracts for two EPC packages:

 – Flowlines, Central processing facilities, gas central processing plant, export pipeline and associated facilities

 – Early development phase, gas gathering, wellsides and export system (GWES) facilities, building and infrastructures work

Four teams of engineering companies submitted an offer for the first EPC package:

 – Bechtel from USA with Bahwan Engineering Company from Oman

 – CB&I from USA with Larsen & Toubro from India

 – Petrofac from UK with Consolidated Contractors Company (CCC) from Greece

 – Technip from France with Galfar Engineering & Contracting and Al-Hassan Engineering Company and Special Technical Service, all three from Oman

Three bidders returned offers for the second EPC package:

 – Bechtel from USA

 – Carillion Alawi from UK and Oman

 – WorleyParsons Oman

With these technical and commercial bids submitted, BP is ready to go for this Oman Full Field Development phase-1 considering that the phase-2 should be mostly concentrated on the expansion of the drilling operations and multiplication of the production wells of this Block 61 tight gas.

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