Tight gas challenge
BP in major deal to unlock trapped gas in Oman
Posted: 29 January 2007
 Send this article
 Print this article
BP last month signed a major production sharing agreement giving access to two Oman fields and associated accumulations that could yield some 20-30 trillion cubic feet of natural gas.
 The agreement covers an area of some 2,800 square kilometres in central Oman , including the Khazzan and Makarem gas fields which were discovered in 1993 but have remained undeveloped due to the complexity of their tight gas reservoirs.
BP says it will apply innovative technology and proprietary expertise to unlock output hitherto trapped in scattered, low-permeability rock.
The agreement was signed by Oman oil and gas minister Mohammed Bin Hamad Al Rumhi, and Tony Hayward, BP's CEO for exploration and production and recently designated BP group CEO. Hayward will replace current CEO John Browne when he retires in July.
"This is a very significant deal for BP which will potentially add a large new gas province to our global portfolio," Hayward said. "We are delighted to be working on such a large project with Oman . BP has extensive tight gas operations elsewhere in the world and this gives us a great opportunity to transfer our expertise and technology to Oman .”
Al Rumhi, said: “We welcome BP to Oman on this important project where new technology is key and we look forward to some early results and a long and productive relationship."
BP said it will conduct a multi-year appraisal programme to understand the nature of the reservoirs. Early production is expected to begin around 2010 during the latter stages of the appraisal study, followed by full field development. The gas produced will be marketed by the Oman government.
BP has particular expertise in producing tight and other forms of challenging gas. The company operates around three billion cubic feet of challenging gas per day from fields in North Africa , Sharjah , Canada and the USA .
For example, it is developing tight gas deposits at the $2.2 billion development of the Wamsutter field in Wyoming , USA , where it currently operates 950 wells. The company also has tight gas operations in the San Juan basin in Colorado , where it leads the industry not only in terms of scale of operations but also in coalbed methane production technology and environmental stewardship.
The Khazzan and Makarem deal is BP's entry into the Oman 's exploration and production sector. The company's existing activities in the sultanate which include the distribution of BP lubricants through the Oil Marketing Company, technical and commercial services provided by Air BP at Muscat's Seeb Airport and an extensive BP Marine fuel bunkering operation at Salalah port.
Subscribe to Pipeline Magazine for more exclusive news and analyses
|
