Uchenna Izundu
International Editor
LONDON, Jan. 22 -- Oman has let a major production-sharing contract to BP PLC to produce an estimated 20-30 tcf of tight gas from Omani fields from 2010. The PSC marks the company's entry into E&P in Oman. According to Omani reports, BP will invest $700 million in gas production.
BP has been granted 2,800 sq km of acreage in central Oman, including Khazzan and Makarem gas fields. The fields, discovered in 1993, have remained undeveloped due to the complexity of their tight gas reservoirs in scattered, low-permeability rock.
BP's experience producing tight gas includes 3 bcfd of tight gas from fields in North Africa, Sharjah, Canada, and the US.
The company will assess the reservoirs under a 3-5 year program, and the Omani government will market the gas produced. A BP spokesman told OGJ it will use imaging technology to compile a picture of the reservoir and will apply fracturing and horizontal well drilling to get high gas flow rates.
According to the BP Statistical Review of World Energy, Oman produced 617.8 bcf of gas in 2005, which was a 2% increase on 2004.
Contact Uchenna Izundu at [email protected].
