BP
today signed a major production-sharing agreement that will give the company access to two Middle East fields. Access to the fields and associated accumulations could yield resources of some 20 to 30 trillion cubic feet of natural gas.
The agreement was signed by His Excellency Mohammed Bin Hamad Al Rumhi, Minister of Oil and Gas, Sultanate of Oman and Tony Hayward, BP's CEO for Exploration and Production and recently designated Group Chief Executive.
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 said in a statement that it will apply ‘innovative technology and proprietary expertise’ to unlock output hitherto trapped in scattered, low-permeability rock.
At a signing ceremony today in the Omani capital, Muscat, His Excellency Dr. 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 will conduct a comprehensive 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 natural gas produced will be marketed by the Government of Oman.
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