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BP scales up to $24 billion tight gas Oman Full Field Development

BP to develop Khazzan and Makarem in phase 1

BP revised significantly upward its capital expenditure in Oman Full Field Development project from $15 billion to $24 billion.

Discovered in the 1990s, the huge reserves of natural gas in Center Oman have been left undeveloped because of the complexity and the potential costs related to this tight gas field trapped by 4,500 – 5,000 meters depth.

Tight gas fields request  specific exploration with detailed geologist analysis to understand where and in which direction to perform the drilling operations.

In 2007, BP signed a production sharing contract (PSC) with the Sultanate of Oman for the Block 61 and the Khazzan and Makarem gas fields representing 2,800 square kilometers.

With this PSC, BP holds 100% of the working interests in the Block 61.

In 2008, BP achieved the onshore largest ever 3D seismic survey to capture all the details of this tight gas field.

Global Geophysical Services from USA and PGS Data Processing ME from Egypt had been awarded the seismic contracts for data acquisition and data processing.

This survey was supported by a drilling campaign with appraisal wells to validate the exploration phase.

In 2011, BP extracted the first natural gas from the Block 61 in using the most advanced hydraulic fracturing technologies with horizontal wells.

WorleyParsons Oman provided first stage engineering services to BP for this appraisal campaign and first production to the existing Saih Rawl gas processing facility.

As a result of this exploration phase, BP estimates that the four gas fields identified in the Block 61, including Khazzan and Makarem, could retain 20 to 30 trillion cubic feet (tcf) of natural gas.

BP to invest $24 billion in Oman Full Field Development phase 1

According to the proven reserves identified in the Block 61, BP defined a program of $24 billion capital expenditure for Oman Full Field Development phase 1.

This Oman Full Field Development phase 1 is planned to produce 1 billion cf/d of natural gas along the 25 years of the concession duration.

According to the pre front end engineering and design (pre-FEED) performed by WorleyParsons Oman the Oman Full Field Develoment phase 1 should include:

 – Central Process Facilities

 – A 1.2 billion cf/d gas processing plant

 – Fracturing equipment

 – Well-testing facilities

 – Waste water treatment facilities

 – 500 km flowlines

 – 100 km export pipeline

 – Infrastructures

The gas processing plant should be located closed to the existing Saih Rawl gas processing plant.

The most critical package is the waste water treatment facilities.

The hydraulic fracturing process developed by BP to extract the tight gas from the Block 61 is delivering excellent performances but consuming a lot of soft water and producing as much waste water.

This hydraulic process needs desalinated water for the addition of chemical gels which withstand the pores opened within the shale rocks and thus help the flow of the gas through the reservoir up to the wells.

This waste water will be re-injected deep into the underground.

BP to award Khazzan and Makarem EPCs on 2013

Then BP is planning for the Oman Full Field Development phase 2 to increase the production by an additional 1 billion cf/d of natural gas.

This second phase of BP tight gas project should not require the same amount of capital expenditure as it should benefit from phase 1 infrastructures such as the central gas processing facilities (CFP), so that this phase 2 should be mostly related to additional drilling operations and production wells.

While WorleyParsons Oman is completed the pre-FEED, BP is planning to run into commercial operations by 2017, meaning that the eight engineering, procurement and construction (EPC) contracts of tight gas Oman Full Field Development phase 1 should be awarded on early 2013.

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1 Comment to “BP scales up to $24 billion tight gas Oman Full Field Development”

  1. Dear sir
    How can your company work

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