BP and Oman Oil Company will expand an exploration and production sharing agreement for the Khazzan natural gas field to include a second development phase, at an estimated cost of USD 16 billion for the entire project. The original 1,042-sq-mile development area will be enlarged by 386.1 sq miles. The project will produce 1.5 Bcf/D of gas, or 40% of Oman’s output. The new development requires final approval of Oman’s government and BP, which is expected next year. The reservoir has tight gas, and extraction will require techniques that include hydraulic fracturing.


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