BP showcases technology at Muscat event as Oman considers the challenges of difficult oil and gas

Oman has rapidly assumed an important place in BP's global portfolio following last year's decision by the government of the Sultanate to grant the company rights to appraise and develop the gas reserves contained within the 2,800 square kilometres Block 61 in central Oman. The licence area includes the Khazzan and Makarem gas fields, discovered in the early 1990s but still undeveloped due to the technical difficulties of exploiting these "tight" gas reservoirs.

"BP recognizes the importance of this project to Oman's strategy of growing its domestic gas production and supporting the continuing economic development of the country. It's a big responsibility and a big challenge, but we believe we have the right combination of people and technology to deliver a successful outcome for BP and for Oman," said Townshend.

BP has developed a series of industry-leading technologies from its worldwide operations that have allowed the company to overcome similar challenges. Today the company operates almost 3 billion cubic feet per day of "difficult" gas production, including the Wamsutter field in Wyoming USA, where it operates over 1,000 tight gas wells.

BP has made similar technological breakthroughs in some of its most important oil fields. These include the giant Prudhoe Bay field in Alaska, where typical industry recovery factors of 40% or less have been dramatically exceeded, with the field set to yield 65% of its in-place reserves.

"With ever-growing energy demand, the development of 'difficult' gas reserves is a major challenge for many of the region's countries, including Oman. We estimate there are at least 1000 trillion cubic feet of such gas reserves in the Gulf states but successful exploitation will require the deployment of a range of advanced technologies," said Peacock.

"The region also contains over sixty per cent of the world's proven oil reserves - almost 750 billion barrels. Again the newest technologies can provide solutions, as they have for BP in Prudhoe Bay and elsewhere. With resources of this magnitude, even a one per cent increase in recovery rates represents a huge potential prize for the countries concerned," Peacock added.
Last month BP started its largest ever onshore multi-azimuth seismic survey in Oman and plans to start its appraisal drilling programme later this year.

OGWA will see BP showcasing its enhanced oil recovery and difficult gas technologies, as well as displaying the renewable and low carbon solutions that it is pioneering through its Alternative Energy division.