New gas output from Oman's' Block 61 to fuel 4th LNG train project
Block 61, one of Oman's biggest gas blocks accounting for nearly a third of the country's natural gas production, is now the focus of renewed efforts to unearth additional reserves that could support the feedstock requirements of future projects, as well as a proposed 4th LNG train planned at Sur on the country's east coast.
According to OQ Exploration & Production (OQEP), which owns a 30 per cent working interest in the prolific BP-operated block, a field development plan (FDP) covering the non-associated gas and condensate asset in central Oman is currently being refreshed to help identify potential new reserves.
'The Field Development Plan (FDP) is being updated to evaluate the block's full potential recoverable gas resources for future growth projects beyond the current Gas Sales Agreement (GSA) and to supply gas for potential new LNG train in Sur,' said Ahmed al Azkawi, CEO of OQEP – the upstream arm of OQ Group – in the company's newly released 2024 financial report.
Plans for a fourth LNG train, first announced by the Omani government last July, centre on the development of a 3.8 million metric tonnes per annum (MMTA) capacity plant that will boost the overall capacity of the LNG complex at Sur to around 15.2 MMTA. A Final Investment Decision (FID) is however contingent on securing new uncommitted gas feedstock, as well as long-term offtake commitments for the additional LNG output.
US-based global engineering technology giant KBR is currently undertaking the front-end engineering design (FEED) contract for the 4th LNG train project, The contract award also entails the expansion of utilities, an LNG tank, the jetty, and associated infrastructure. If green-lighted for implementation, it is targeted for commissioning only in 2028.
Gas output from Block 61, with its Khazzan and Ghazeer tight-gas reservoirs, averages around 1.5 billion cubic feet (bcf) per day. Together with its condensate output, the Block contributed about 40 per cent of OQEP's working interest production in 2024, helping the company achieve its production target for the year.
Block 61 is part of OQEP's sizable portfolio of 14 upstream oil and gas assets in the Sultanate of Oman. BP as operator owns a 40 per cent working interest, with PTTEP (20 per cent) and Petronas (10 per cent) as partners as well.
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