12th Oct 2020 08:51
(Alliance News) - FTSE 100-listed BP PLC on Monday said it has commenced production from the Ghazeer gas field in Oman, 33 months after the development was approved.
The London-based oil major said production from Ghazeer, in Block 61, was initially expected to start in 2021. The first project in Block 61, the Khazzan field, was brought online in September 2017.
Total production capacity from Block 61, comprising both Khazzan and Ghazeer, is expected to rise to 1.5 billion cubic feet of gas a day and more than 65,000 barrels a day of associated condensate, BP said. With an estimated 10.5 trillion cubic feet of recoverable gas resources, Block 61 has the capacity to deliver 35% of Oman’s total gas demand.
BP Chief Executive Officer Bernard Looney said: "The start-up of Ghazeer is an important milestone in our strategic partnership with Oman, delivering critical national infrastructure for the sultanate. We appreciate the collaborative support we have received from the government of Oman and our partners in delivering this significant start-up safely and ahead of schedule, particularly as Oman prepares to celebrate its 50th national day.
"This project has been delivered with capital discipline four months early, wells are being drilled in record times and, importantly, safety performance has been excellent. It exemplifies what a strong and resilient hydrocarbons business looks like - a core part of our strategy."
BP owns 60% stake in Block 61, while Makarim Gas Development Ltd has 30% stake and Petronas unit PC Oman Ventures Ltd owns 10%.
Shares in BP were down 1.7% at 218.35 pence each in London on Monday morning.
By Tapan Panchal; [email protected]
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