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Khazzan Tight Gas Project

  • Project Type

    Tight gas field

  • Location

    Ad Dhahirah Governorate, Sultanate of Oman

  • Ownership

    BP (60%) and Oman Oil Company Exploration & Production (40%)

  • Operator

    BP

  • Estimated Output

    10.5tcf of gas and 350 million barrels of condensate

  • Construction Started

    Phase one: 2014, Phase two: 2018

  • Start of Operations

    Phase one: 2017, Phase two: 2021

  • Contractors

    Petrofac and Jacobs Engineering Group

The Khazzan tight gas project is located 350km southwest of Muscat in Block 61 in the Ad Dhahirah Governorate, Oman. Being developed in two phases, it is the biggest upstream project in the country.

Development of the first phase of the project commenced in 2014 with an investment of approximately $1.4bn and was commissioned in September 2017. Phase two of the project includes the development of the Ghazeer field with an estimated investment of $800m. Announced in 2018, the second phase is scheduled to come online in 2021.

Block 61 is jointly owned by BP (60%, operator) and Oman Oil Company Exploration and Production (40%).

The gas project is currently producing one billion cubic feet of gas a day (bcf/d) and 35,000 barrels per day (bpd) of condensate. The second phase of the project is expected to boost the field production by 0.5bcf/d of gas and 15,000bpd of condensate.

The two phases will increase the total estimated output from the project to 10.5 trillion cubic feet (tcf) of gas and 350 million barrels of condensate, ensuring long-term gas supply to Oman.

Khazzan gas field discovery and development

The Khazzan gas field was discovered in 2000, although the tight gas reservoirs were discovered in the 1990s. The proposed field development plan includes the drilling of more than 300 wells over a 15-year period.

“The first phase of the Khazzan gas project involved the drilling of 200 wells.”

In 2013, an initial gas sales and production sharing agreement was signed between BP and the government of Oman for the development of the Khazzan tight gas field. The agreement was amended in 2016 to include an additional 1,150km² of area in Block 61, enabling the second phase of development of the project.

Khazzan tight gas project phase one development

The first phase of the Khazzan gas project involved the drilling of 200 wells and the development of a two-train central processing facility.

The phase one aims to develop 7tcf of gas resources and achieve a plateau production of one billion standard cubic feet of gas a day and 25,000 barrels of gas condensate a day.

Khazzan tight gas project phase two details

Phase two of the Khazzan tight gas project will involve the addition of a third gas train with a capacity of 500 million standard cubic feet of gas a day (Mmscfd) to the existing CPF.

The second phase will deliver an additional 0.5 billion standard cubic feet of gas a day, along with 15,000 barrels of condensate per day. Drilling of the appraisal well for the second phase started in 2017, along with the first three development wells.

Contractors involved within the Khazzan tight gas project

BP awarded a three-year engineering, procurement and construction management contract to Jacobs Engineering Group in January 2018 for phase two of the Khazzan gas project. The scope of the contract includes expansion of the existing gas gathering and export systems as well as wellsite facilities. 

Petrofac was awarded an $800m contract to develop phase two of the central processing facility of the field in December 2017. The scope of work includes the addition of a third gas train with a capacity of approximately 500Mmmscfd.

Petrofac will also develop associated infrastructure and connect the existing phase one facilities with phase two.

Petrofac was earlier awarded a $1.4bn-worth contract for the development of the central processing facility, under phase one.

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