BP plans to spend $750m to appraise Oman gas flows

Fuel from test phase is being pumped through 33km pipeline to the domestic market
BP plans to spend $750m to appraise Oman gas flows
By Bloomberg
Fri 15 Apr 2011 12:59 PM

BP plans to invest about
$750 million to appraise tight gas flows in Block 61 in Oman before
making an investment decision next year.

The company
has drilled seven out of a planned nine wells in the rock with low
permeability, which prevents gas from flowing by itself, the
London-based company said in its in-house BP Magazine.

The fuel from the
test phase is currently being supplied to a compressor and pumped
through a 33km (20 mile) pipeline to the domestic market.

“This phase
is about acquiring production data for up to nine months, to understand
how the wells decline, and what that means in terms of how much gas
could be delivered from the entire field,” said Jonathan Evans, a vice
president for BP Oman.

The company plans to appraise and develop the
Khazzan and Makarem gas fields about 400km southwest of Muscat.

BP may produce as much as 1 billion cubic feet a day of unconventional gas from Oman, Evans said in November.

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