BP is extending the exploration and production sharing licence of a gas project in Oman.
The UK energy giant and Oman Oil have agreed to develop the second phase of the Khazzan natural gas field by extending Block 61.
It represents one of the largest unconventional tight gas accumulations in the Middle East, according to BP.
Total production from phases one and two is expected to be around 1.5 billion cubic feet per day, equivalent to around 40% of Oman’s current total domestic gas production.
BP is the operator of Block 61 with 60% interest and Oman Oil holds the other 40%.
Bob Dudley, CEO at BP: “Khazzan is a major resource with the potential to produce gas for Oman for decades. This expansion of its development will build on the success we are already seeing in our work on the first phase, working closely with our Omani partners and applying BP’s leading technology and extensive tight gas experience.”
Earlier this month, BP announced it will cut up to 3,000 new jobs after it reported a fall in profits.