BP Commences Natural Gas Production In Oman's Khazzan Field

British oil giant BP (LON:BP) Plc (NYSE:BP) announced the commencement of natural gas production at the Khazzan field in Oman. The company will be using fracking technology, which is rarely used in the Middle East.

In the field, BP holds a 60% stake, while the remaining is owned by Oman Oil Company Exploration & Production.

The Khazzan gas project, expected to have an inventory of 300 drilling wells, is the largest start-up for BP in 2017. Also, it is the sixth project start-up among the seven new key developments of the company this year. All the projects are likely to take the energy giant closer to its target of adding 800,000 barrels of oil equivalent every day by 2020.

BP has two planned phases for the Khazzan project. The company expects the field to generate 1.5 billion cubic feet of gas every day after the completion of the phases. Further, the company estimates recoverable reserves from the natural gas field of around 10.5 trillion cubic feet.

Headquartered in London, BP is one of the largest integrated energy firms in the world with a strong and diversified portfolio of development projects. The company’s upstream projects are expected to fetch significant cash flow in 2020 and beyond.

The near-term prospects for BP’s upstream businesses have been looking up as crude has recovered significantly from the historical lows of February 2016. Other oil and gas exploration and production players like Apache (NYSE:APA) , Abraxas Petroleum (NASDAQ:AXAS) and W&T Offshore, Inc. (NYSE:WTI) are also poised to benefit from the same.

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