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BP and Eni partnering on onshore exploration in Oman

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BP and Eni will be partnering up on a new exploration agreement covering a 3,100km2 onshore block in central Oman. 

BP and Eni have signed an HoA with the Sultanate of Oman for exploration opportunity in Block 77
(Image via Times of Oman)

The two major companies have signed a heads of agreement (HoA) with the Sultanate of Oman for the exploration opportunity. They will now enter discussions with the Ministry to finalise details of the exploration and production sharing agreement (EPSA) of Block 77.

“This would represent a further deepening of BP’s important position in Oman, building on our successful delivery of the major Khazzan project in 2017 and its second phase of development that is currently under construction.

“We look forward to continuing to explore and efficiently develop the country’s resources, working in close partnership with ENI and Oman to underpin our commitment to delivering long-term gas production for Oman.”

BP's previous successes in Oman includes the Khazzan project which began production of 1 billion cubic feet of gas per day in 2017
(Image via Oman Observer)

BP have had an upstream presence in Oman since 2007, initially beginning with exploration of the 2,850km2 Block 61, which led to the development of the Khazzan project in 2013. Khazzan began gas production in 2017, under budget and ahead of schedule and currently produces around 1 billion cubic feet of gas per day (bcf/d).

At peak times it created over 13,500 jobs.

The success led to a secondary development, known as Ghazeer, in a further 1000km2 of the block - due to come onstream in 2021 and expected to produce 0.5bcf/d.

Eni are operating in Block 52 and Block 47 as well as exploring Block 77 with BP
(Image via The Oil & Gas Year)

Eni’s activities in the area began more recently, but are expanding rapidly. The company entered in to an EPSA for the offshore Block 52 alongside Qatar Petroleum - with Eni holding a 55% stake. 

At the same time as announcing their partnership with BP for Block 77, Eni also revealed another EPSA with the Oman Oil Company Exploration and Production (OOCEP) for Block 47 - an onshore block in the Omani A’Dakhiliyah Governate that covers an area of 8,524km2. Eni will be the operator with a 90% participating interest and hope to begin exploration operations later in the year. 

Successful operations in any of these fields will create many new jobs throughout the area, and push more operators to invest further in Oman. 

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