BP boosts capital expenditure in Oman natural gas

CAPITAL expenditure has been increased in Oman's natural gas sector by $600m last year, mainly due to BP Oman's investment in the Khazzan field, due to start production in 2017.

Oman has invested $11.4 billion in developing the oil and gas sector last year. However, the government was able to reduce its total budgeted expenditure in the oil sector by $1.3 billion during the period, mainly due to enhanced efficiency.

Of the total expenditure, $8.2 billion was for oil sector, while the remaining $3.2 billion investment was for developing the natural gas fields.

BP Oman's natural gas project in the Khazzan field is now 65 per cent complete and will increase Oman's natural gas supply by 40 per cent.

BP signed an agreement to develop Khazzan in 2013 and its $16m (£11.03m) in the gas field now covers 3,700sq km. BP operates this block with a 60 per cent interest and state-owned Oman Oil owns the remaining 40 per cent.