Block 77 covers a total area of over 2,700sq km. BP and Eni will each hold a 50 per cent interest in the exploration and production sharing agreement, with Eni acting as operator during the exploration phase, according to a press statement issued by BP.
The agreement was signed by H E Salim bin Nassier al Aufi, Undersecretary of the Ministry of Oil and Gas, Salvatore Giammetti from Eni and Yousef al Ojaili, president of BP Oman.
The agreement for this significant new exploration opportunity follows from the heads of agreement for the block that was signed in January 2019.
Block 77 is located 30km east of the BP-operated Block 61, which contains the already-producing Khazzan gas project as well as the Ghazeer project, currently under development.
Bob Dudley, BP’s group chief executive officer, said, “Today’s announcement reflects the continued exploration potential we see in Oman and reinforces BP’s commitment to the sultanate. We look forward to working with the government and Eni to continue to explore and develop the country’s resources and secure its long-term gas production.”
BP successfully brought the major Khazzan project into production in 2017. Ghazeer, the second phase of development on Block 61, is currently under construction and is scheduled to come on stream in 2021. Khazzan currently produces around 1bn cubic feet of gas per day and Ghazeer is expected to add a further 0.5bn cubic feet per day production.
BP is the operator of Block 61 and holds a 60 per cent interest. Oman Oil Company Exploration & Production holds a 30 per cent interest and PC Oman, a wholly owned subsidiary of Petronas, holds remaining 10 per cent interest.