BP, Europe's second-largest oil company, is planning to invest an estimated $15 billion in developing projects such as the Khazzan and Makarem fields in north central Oman, according to the Oman Daily Observer. The paper said BP's investments could boost Oman's natural gas production by a third.
BP (BP) confirmed its investments will be among the largest Oman has seen in years. The company said $10 billion of the sum will be devoted to drilling wells and $5 billion will be used for surface facilities.
The company's investment will target part of the estimated 30 trillion cubic feet (of tight gas trapped in deep reservoirs at depths of between 4,500 to 5,000 meters within BP's Block 61 concession, the Daily Observer reported. The Khazzan project has projected output of 1.2 billion cubic feet per day.
BP expects to start the project with 60 wells and then add about 20 wells per year over a decade. The company signed an exploration and production sharing agreement with Oman's government in 2007 and is expected to submit a full field production plan early next year.