BP has started production from its Block 61 Phase 2 Ghazeer gas field, in Oman, 33 months after the development was approved.
Ghazeer was initially expected to come into production in 2021. The first phase of development of Block 61 – Khazzan – was brought online in September 2017.
BP is the operator of Block 61 with a 60% stake. Partners are Makarim Gas Development Limited (OQ) 30%; PC Oman Ventures Limited (PETRONAS) 10%.
Mohammed Al Rumhy, Minister of Energy & Minerals of the Sultanate of Oman, stated: “I am delighted to see bp bringing the Ghazeer gas field online - it’s an important project for Oman and we are extremely proud of it. The gas from Ghazeer will contribute towards Oman’s 2040 vision in terms of providing additional energy to local industries as well as diversifying the economy.”
Bernard Looney, BPchief executive, said: “The start-up of Ghazeer is an important milestone in our strategic partnership with Oman, delivering critical national infrastructure for the Sultanate. We appreciate the collaborative support we have received from the government of Oman and our partners in delivering this significant start-up safely and ahead of schedule, particularly as Oman prepares to celebrate its 50th national day.
“When we introduced our plans to reinvent BP, we were clear that to deliver them we have to perform as we transform. There are few better examples of how we are doing just that than Ghazeer. This project has been delivered with capital discipline four months early, wells are being drilled in record times and, importantly, safety performance has been excellent. It exemplifies what a strong and resilient hydrocarbons business looks like – a core part of our strategy.”
The development of Block 61 (Khazzan and Ghazeer) comprises a three-train central gas processing facility; a water treatment plant; 400km of gas and condensate export pipelines; a waste management area; an electricity substation; almost 500km of roads; and over 60km of water pipelines. 132 wells have been drilled, with more planned over the lifetime of the project.
Gas from Block 61 is distributed for domestic consumption via Oman’s national gas grid, while also boosting the availability of feedstock supply for Oman LNG. BP Trading and Shipping buys 1.1 million tonnes a year of LNG from Oman LNG under a seven-year deal that started in 2018.
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