Yahoo Finance Fracking fires up BP’s largest project of the year
BP has started production at the Khazzan project in Oman, the largest of the new projects it has scheduled for this year, as the oil major attempts to export its US fracking experience around the world and bolster is relatively meagre portfolio.
The $16bn gas project uses the same controversial drilling technique that has unleashed an energy revolution in the US. Fracking has been used to prepare around 200 wells that will tap gas three miles below the earth’s surface in extremely hard, dense rock.
The project is expected to produces one billion cubic feet of gas a day. BP believes the daily volumes could rise to 1.5 billion cubic feet in the project’s second phase, which will include an additional 100 wells.
BP has used horizontal well-drilling and hydraulic fracturing, known as fracking, for years in the US. But the Khazzan project will be its biggest unconventional gas project outside of the US, and the largest of seven new projects the company was planning for this year.
BP boss Bob Dudley credited the results of the Khazzan project to the techniques the company has perfected in the US.
“Khazzan further demonstrates BP’s ability to consistently deliver large, complex projects on schedule and within budget while applying the industry-leading skills and technology we’ve developed globally,” Mr Dudley said.
“The start of production from Khazzan, BP’s sixth and largest major project start-up so far this year, is an important milestone in our strategic partnership with Oman," he added. "With further development already planned, this giant field has the potential to produce gas for Oman for decades to come."
BP’s seven new projects this year are expected to help the company meet its target of producing 800,000 barrels of oil equivalent per day from new projects 2020 to boost its portfolio, which lags other oil majors.
