| 03 Nov 2009 |
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BG, BP gas exploration results encouraging, says Rumhy
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MUSCAT — Gas exploration efforts by energy majors BG and BPBP
, targeting tight gas reservoirs in central Oman, have yielded “encouraging results”, Oil and Gas Minister Dr Mohammed bin Hamed al Rumhy said. Successful development of the potentially prolific, but technically challenging reservoirs, could significantly augment natural gas supplies for Oman’s growing industrial, petrochemical and energy needs. In comments to the Observer, Dr Al Rumhy said he was heartened by efforts made so far by BG and BPBP in harnessing the hydrocarbon potential of their respective blocks. “The company is busy working on devising the most effective exploitation plan for the resources discovered in the field. Some of the wells are under a long-term production test to assess the sustainability of both gas and condensate production from the reservoirs. We will enter into a serious discussion with them when they are ready with the development plan,” he stated.
BG Group, which acquired the 1,500 sq kilometre block under an EPSA signed in April 2006, completed the 3D seismic acquisition of the entire concession in early 2008. According to BG, gas condensate was found in all seven appraisal wells drilled by the company during 2008-2009. No further wells are planned to be drilled as focus now shifts to finding optimum ways to develop gas from the field.
The Group says it is aiming to move to project sanction, and targeting commissioning of the facility towards the second half of 2012. In the adjoining Block 61 concession, energy giant BPBP
has so far drilled four wells and is currently drilling its fifth well, Dr Al Rumhy said. “As in the case with BG, gas was tested in all these wells, which is encouraging news for all of us. The plan is for the first few BPBP wells to be produced via a pipeline to Saih Rawl Central Processing Station (SR-CPP), whereby early monetisation of resources is realised. Moreover, production through the SR-CPP will also give BPBP some time to assess the reservoir performance and come with a long-term integrated resource exploitation plan,” the Minister added. BP’s Block 61, for which it signed an EPSA in February 2007, holds the very promising Khazzan & Makarem gas fields.
The company has announced a commitment to investing $650 million during the initial six-year appraisal phase of the project. At a press briefing in July this year, BP Oman General Manager Dr Jonathan Evans estimated the block’s total gas resource at 30-40 trillion cubic feet (TCF) of gas in place, which representing a potentially huge natural gas resource for the Sultanate.
Under an agreement concluded with the Ministry of Oil & Gas earlier this year, BPBP has launched an Extended Well Test (EWT) scheme that would allow for appraisal gas from the four wells to be fed to the government owned gas processing plant at Saih Rawl. Also as part of the EWT scheme, BPBP is building a gas compression station and associated facilities of a total capacity of 75 million standard cubic feet per day (mmscfd). Gas produced during the extended well testing phase, rather than being flared, will be pumped to Saih Rawl.
By Conrad Prabhu
© Oman Daily Observer 2009
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