The Oman government and British Petroleum (BP) are likely to make a joint decision soon on the full development of the Khazzan and Makarem gas fields, according to H E Nasser bin Khamis al Jashmi, undersecretary at the Ministry of Oil and Gas.
Speaking at the 8th Gas Arabia Summit, H E Jashmi said, “I am glad to see the progress which BP is making towards the development of the Khazzan-Makarem gas fields. It is progressing well with several appraisal wells already drilled and long-term production tests completed.”
“We hope that there will be a joint decision soon between the government and BP to go for the full development which is estimated to add about one-third of current gas production in Oman,” he said.
Later speaking to reporters, H E Jashmi said that BP is doing a lot of appraisal work in the fields which is also taking a lot of time.
“We are involved with BP in discussing all technical and commercial issues. We have closed many issues and there are still some that need to be closed. I am not sure whether we will sign the agreement this year or the next - this depends on the progress in negotiations. It depends on the outcome of many issues which are still under discussion.”
H E Jashmi said that the government and BP are also discussing whether to sign a heads of agreement first or to go directly ahead for the full agreement. “We are already discussing the heads of agreement but I am not sure how long it will take us to finalise it,” he added.