LONDON, Feb 14 (Reuters) - Britain's BP and partnerOman Oil signed an agreement on Sunday to develop a second phaseof the Khazzan natural gas field, taking the estimatedinvestment in the project to $16 billion, the company said.
The agreement with the government of Oman will add more than1,000 square kilometres to the original 2,700 square kilometreblock, which is expected to start delivering gas in late 2017,BP said.
The second phase is expected to come on stream in 2020, andtogether they are expected to produce 1.5 billion cubic feet ofgas per day, the oil major said in a statement.
BP is the operator of the block, with a 60 percent interest.State-owned Oman Oil holds the other 40 percent.
(Reporting by Paul Sandle, editing by Larry King)