Energy major BP expects to invest an estimated $15 billion in the full field development of its gas-rich Block 61 concession, which includes the Khazzan and Makarem fields, in north central Oman. The proposed investment, which is subject to a declaration of commerciality slated before the end of next year, will boost Oman’s total gas production by a third, thereby opening up a potentially prolific supply of natural gas as fuel and feedstock for industry.
According to the head of BP’s operations in Oman, the proposed project promises to have immense benefits for the Sultanate’s industrial and economic development. “This will be a very large project — the largest project in the Sultanate for quite some time — and will require approximately $15 billion in capital investment from the energy major BP to make that happen.
“About $10 billion of that will go into the drilling of wells and the rest will go for surface facilities,” Dr Jonathan Evans, Vice-President of BP Oman said at a media briefing here yesterday. Significantly, the investment will target part of the estimated 30 trillion cubic feet (tcf) of tight gas trapped in deep reservoirs at depths of between 4,500–5,000 metres within BP’s Block 61 concession.
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