BP and Eni sign gas exploration and production agreement with Omani government

Khazzan gas field, Oman. CREDIT: BP

British energy multinational BP and Italy’s Eni have signed a deal with Oman’s government that will allow the firms to search for new sources of gas in the sultanate.

The exploration and production sharing agreement (ESPA) approved by Oman’s Ministry of Oil and Gas covers Block 77 in central Oman, an area of area of more than 2,700 square kilometres.

Today’s announcement follows the signing of a heads of agreement for the block on January 14.

Block 77 lies 30 kilometres east of the BP-operated Block 61, which contains the already-producing Khazzan gas project, as well as the Ghazeer project, which is currently under development.

BP and Eni will hold an equal interest in the agreement, with Eni acting as operator during the exploration phase.

Bob Dudley, BP group chief executive, said: “Today’s announcement reflects the continued exploration potential we see in Oman and reinforces BP’s commitment to the Sultanate of Oman.

“We look forward to working with the Government and Eni to continue to explore and develop the country’s resources and secure its long-term gas production.”

A statement issued by Eni said: “Through the signature of Block 77 EPSA, Eni strengthens its role as an important player in The Sultanate of Oman, bringing its well-known experience in the exploration of new plays within existing oil and gas provinces.”