Project Profile

Value: US$16bn project (Khazzan)
Location: Az Zahirah Province, Block 61
Area: 3700 sq. km (combined)
Potential production:  1.5 bcf (42 mcm) per day of gas (Khazzan)
Recoverable gas reserves: 10.5 tcf (283 bcm) (Khazzan)
Production start-up year: September 2017 (Khazzan Phase 1)
Production start-up year: 2020 (Khazzan Phase 2)

The project development covers an area of 2,700 sq km of the central Khazzan and Makarem gas fields, which are estimated to contain 30 trillion-40 trillion cubic feet (tcf) of gas. The production may average at least 1 billion cubic feet per day. The gas will used to meet rising demand, from Sohar industry, additional LNG capacity at Sur and for EOR projects. The fields contain a mix of sweet and sour gas located to the west of the giant Saih Rawl field. The gas is trapped in four tight reservoirs - Barik, Miqrat, Amri and Buah. The gas is approximately 4,500 metres below the surface. The project will see the drilling of new wells, construction of a central processing facility and the installation of pipelines for the supply of feed gas. Khazzan, which lies in central Oman north of the Saih Rawl field, has a very complex structure. But it is thought to have great potential and could prove one of the sultanate’s biggest producing gas fields. Makarem, which is north of Khazzan and has never been developed, is known to have sweet gas reserves. The gas will be transported to the Saih Rawl gas processing plant, 40 kilometres from the center of the block.

Khazzan tight gas field

The Khazzan tight gas field lies in the north-west of the country in Block 61 – licensed under an exploration and production-sharing agreement (PSA) to BP in 2007. After plans set out in 2016 the project covers a total area of 3,700 sq km, will be developed in phases, with plans for it to be fully operational by 2020. Developers expect production in the order of 1.5bn standard cu feet (scf) of gas per day, equivalent to 40% of Oman\'s current output. Around 300 wells will be drilled over the full project’s lifetime.

- Khazzan Phase One

Phase One targets around 7 tcf (198 bcm) of tight reserves to produce around 1 bcf (28 mcm) per day of sales gas. Work included drilling 200 wells and the installation of a two-train central processing facility.

- Khazzan Phase Two (Ghazeer) (to be completed in 2020)

Phase Two will target an additional 3.5 tcf (99 bcm) of tight reserves to produce 500 mmcf (14 mcm) per day of gas.


Operators:

Oman Oil Company S.A.O.C (OOC): 40%

BP Oman: 60%

Contractors:

Comporite Pipes Industry: supplying pipes and fittings

Global Geophysical Services: 3D seismic data

KCA Deutag: Construction and operation of three newbuilds

Muscat - Galfar Engineering and Contracting Company: initial civil works (package-2), which includes general civil works (waste management area, sludge drying area, production well pads and associated infield roads), procurement and construction

PGS Data Processing ME: 3D seismic data

Petrofac: EPC - building of the central gas processing facility

WorleyParsons: Select stage engineering

Jacobs Engineering: Contract by BP for process and infrastructure work including Jacobs providing engineering, procurement and construction management services in relation to the gas gathering and water pipelines, wellhead production facilities and export pipelines for the development of the southern sector of Block 61

Veolia: Contract to design, build and operate a raw water treatment plant for BP\'s project to develop the Khazzan gas field (a US$50 million water treatment facility has a maximum capacity of 6,000 m3/day, split between 4,000 m3/day of process water and 2,000 m3/day of drinking water)

Carillion Alawi: Contract by BP to build the operational base and accommodation complex for its Khazzan gas project.  The contract involves the construction of accommodation facilities, including an operational base, a residential complex for 250 personnel and other infrastructure buildings in the Khazzan gas field, approx. 350km South West of Muscat. Work on the contract is expected to start in September 2015 and is scheduled for completion in mid-2017.