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BP ramps up gas output from Block 61

Long-term returns: Production increase will generate value for Oman and the Block 61 partnership: BP

MUSCAT: Energy major BP, in partnership with OQ, PTT Exploration and Production Public Company Limited (PTTEP), Petronas and the Ministry of Energy and Minerals, has announced that it has significantly increased production from the Block 61 gas field in central Oman.

Gas production has increased to 1.5 billion cubic feet per day (bcf/d), from its current level of around 1bcf/d. Associated condensate production is also expected to rise. The increase will generate value for the Oman government and Block 61 partnership.

BP-operated Block 61 was developed in two stages – Khazzan, that began production in 2017, and Ghazeer, that started up last year. It is a high-quality, highly efficient development, designed from the outset to incorporate a number of lower emissions technologies.

BP Oman president Yousuf al Ojaili commented: “BP is building a balanced portfolio that will continue to generate both cash and value as we transform from an international oil company to an integrated energy company. A core part of this strategy is our resilient and focused hydrocarbons business, of which Block 61 is an excellent example, offering stable, long-term returns.”

“We are committed to supporting the sustainable development of Oman’s economy and are proud of our strategic partnership with the Sultanate. Gas from Block 61 is a key part of the integrated energy value chain and will play a core role in Oman’s future development. We appreciate the collaborative support we have received from the Oman government and our partners in delivering this increase in production.”

With an estimated 10.5 trillion cubic feet of recoverable gas resources, Block 61 supplies over 30 per cent of Oman’s total gas demand. Gas from Block 61 is distributed for domestic consumption - industrial and power – through Oman’s national gas grid and is used as fuel for power plants, and feedstock to industries and to Oman LNG.

BP prioritises in-country value throughout its operations. During the development of Block 61, BP has worked closely with local vendors to develop their capabilities and help them be competitive both in Oman and globally, resulting in a number of contracts and technical scopes moving from international to local Omani contractors. Updated, industry-leading policies and procedures on workers’ welfare and human rights have also been embedded throughout the development.

At the end of 2020, Omanization in BP Oman reached around 85 per cent and Block 61 spend with Omani-registered companies exceeded $610 million.

Source: BP Oman

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