MUSCAT, Sultanate of Oman –  BP and Eni today signed a heads of agreement (HoA) with the Ministry of Oil and Gas of the Sultanate of Oman to work jointly towards a significant new exploration opportunity in Oman.


Under the HoA, the two companies will work with the Government of Oman towards the award of a new exploration and production sharing agreement (EPSA) for Block 77 in central Oman. BP and Eni will now enter discussions with the Ministry to finalise details of the EPSA.


Bernard Looney, BP chief executive upstream said: “This would represent a further deepening of BP’s important position in Oman, building on our successful delivery of the major Khazzan project in 2017 and its second phase of development that is currently under construction. We look forward to continuing to explore and efficiently develop the country’s resources, working in close partnership with Eni and Oman to underpin our commitment to delivering long-term gas production for Oman.”


Block 77, with a total area of almost 3,100 km2, is located in central Oman, 30 km east of the BP-operated Block 61 which contains the already-producing Khazzan gas project as well as the Ghazeer project, currently under development. Gas sales agreements and approval for the development of the Khazzan project on Block 61 were signed in 2013. Khazzan now produces around 1 billion cubic feet of gas a day (bcf/d). In 2016, the EPSA for Block 61 was amended, adding a further 1,000 km2 and allowing a second phase of development, known as Ghazeer. Ghazeer, which is expected to add a further 0.5 bcf/d production, is currently under development, due to come onstream in 2021.


BP has had an upstream presence in Oman since 2007 when it signed an exploration and production sharing agreement for the 2,850 km2 Block 61 in central Oman. BP is the Operator of Block 61 and holds a 60% interest. The Oman Oil Company for Exploration & Production holds a 30% interest and PC Oman, a wholly owned subsidiary of Petronas holds 10%.