BP signs agreement to develop Omani Khazzan tight gas project

BP has signed a 30-year amended exploration and production sharing agreement and a gas sales agreement with the Sultanate of Oman to develop the country´s Khazzan tight gas project, the petrochemicals giant announced on Monday. Construction was scheduled to start in 2014 and first gas is expected in late 2017. It was estimated that plateau production of approximately 1bn cubic feet will be reached in 2018.Khazzan, which is located in the South of Block 61, was expected to require a total investment of $16bn. That included the investment made to date in the appraisal of the resource and early well test programme. The agreement also provided for the additional appraisal of further gas resources within Block 61, which are expected to be developed in subsequent project phases. The state-owned Oman Oil Company Exploration & Production was to hold a 40% stake in Block 61, while BP - the operator of the field - would have 60%.As of 12:39 shares of BP were edging higher by 1.12% to the 470.9p mark. AB