Oman to Sign Pact with BP to Develop Oil Fields

From Oman Tribune

MUSCAT The Sultanate has made unprecedented progress in developing tight and acid gases since it dug the deepest well, more than 7km deep, in the Middle East in a bid to find non-traditional gas resources, according to a government official.

HE Nasser Bin Khamis Al Jashmi, Undersecretary at the Ministry of Oil and Gas, who was speaking at the opening session of the 8th Gas Arabia Summit, hailed the works undertaken by BP company and the progress made in developing the biggest two gas fields in the Sultanate, namely Khazzan and Makarim. The appraisal wells were dug out and long-term production tests were completed.

He said that an agreement could be reached between the government and BP to ensure comprehensive development of the two fields.

He said that as per the BP production plans, the output is expected to be about 1 billion cubic feet of gas per day. This will be equal to one third of the current gas production, thus ensuring sustainability of gas production in the long run.

Jashmi added that efforts made by Petroleum Development Oman (PDO) company, Occidental, Oman Oil Exploration and Production company, Petronas and other companies have made good progress in exploring new gas reservoirs that complement the current reservoir.

The Sultanate, which focuses on developing gas-based industries, is always trying to provide local industries with gas once available, he said.

The gas companies are focusing on supplying to the existing industries in Sohar and other areas in the Sultanate where many major and important projects were set up.

A contract to supply gas to Al Duqm Industrial Area will be awarded to Oman Gas shortly as part of the government plans to develop industries in Al Duqm area, he added. The plan also included constructing a main oil refinery and petrochemicals complexes there. The industrial area will get gas by 2016, he added.

Replying to a question on reconsidering the Omani gas sale prices, he said that many contracts were signed with consumers when gas price was low. Despite this fact, the Ministry of Oil and Gas started negotiations with a number of local and international companies. The earlier prices have been already renewed that resulted in great revenues to the state.

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