bp, in partnership with OQ, PTT Exploration and Production
Public Company Limited (PTTEP), PETRONAS and the Ministry of Energy & 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% 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% and Block 61 spend with
Omani-registered companies exceeded $610 million.
