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Khazzan-Makarem Gas Field Development Project - Block 61 (Phase 1)

  • Completed
  • Oman
  • Gas Processing

This project calls for development of tight gas in the central Khazzan-Makarem field, which is estimated to contain a total of at least 20 trillion-cubic-feet (tcf), or nearly 55 per cent of Oman's total proven gas reserves of 35 tcf. The scope of work of this project involves development of an onshore gas field covering 2,800 square kilometres involving exploration of at least 7 wells for full reserve determination and production facilities . The two fields contain a mix of sour and sweet gas, which are trapped in tight reservoirs. The gas produced from these fields will be used to meet rising gas demand from new industries being built in Sohar, additional liquefied natural gas (LNG) capacity at Sur and a string of enhanced oil recovery (EOR) projects. International and regional oil companies have submitted appraisal and development proposals on September 16, 2006 for a long-term agreement to develop the fields. First gas from the Block 61 test well was achieved and delivered to Oman’s Saih Rawl gas plant in March 2011. The principal advancement all around penetrated at the field was the KZN-14, which was bored by the Dalma-5 rig in September 2013. It was the first of several hundred development wells to be spudded within the block. First gas from phase one of project was achieved in September 2017. Bidders included from the locations: France, Abu Dhabi, UK, US, Australia, Japan, Calgary, Canada, UAE, Italy. The client plans to sign a combined exploration and production sharing agreement (EPSA) and general services agreement (GSA) to develop, process and supply gas. These agreements will be valid for the next 30 years and will also provide for additional appraisals for future discoveries within Block 61. It is expected to select a developer by late 2006.

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