Oman
bp has had a presence in Oman since 2007 and stands as a major investor within the country
Committed to sustainable development in Oman
We are committed to supporting Oman’s sustainable development through developing local capabilities, supporting local companies, while giving back to society.
We’ve launched the third edition of our socioeconomic review, which highlights our commitment to Oman’s sustainable development as we demonstrate aim 9: to be a leader in transparent reporting.
What we do
Oman continues to be a strategically vital country for bp and through our various projects at bp, aim to encourage economic diversification and empower local talent.
bp has a long history of oil and gas exploration and production in the Middle East. It is a major investor in Oman and one of the world’s pioneers in tight gas production, bringing technology and experience to develop one of the Middle East’s largest unconventional gas resources in the Sultanate’s Block 61.
Production from phase one of Block 61, Khazzan, started in 2017. In October 2020, production from phase two, Ghazeer, started safely, with capital discipline and significantly ahead of schedule. In January 2019, bp and ENI signed an EPSA agreement with the government to work jointly towards an exploration opportunity in Block 77. bp trading & shipping purchases LNG from Oman LNG under a seven-year deal that started in 2018.
Capacity to deliver around 35% of Oman’s total gas demand
Combined, Khazzan and Ghazeer produce 1.5 billion cubic feet of gas a day and more than 65,000 barrels a day of associated condensate. With an estimated 10.5 trillion cubic feet of recoverable gas resources, the block has the capacity to deliver approximately 35% of Oman’s total gas demand.
The Ghazeer project
Green completions
Adopting experience from bp’s onshore operations in the US, Ghazeer’s wells were tested and completed using the ‘green completions’ concept. Historically, hydrocarbons produced during well testing for new completions would be flared. In green completions, the hydrocarbons are routed to the production facility instead, reducing greenhouse gas emissions. Since adopting this approach in 2019, 201,000 tonnes of CO2e emissions were saved – equivalent to removing 44,000 cars from the road for a year.
Distribution
Gas from Block 61 is distributed for domestic consumption via Oman’s national gas grid, while also boosting availability of feedstock supply for Oman LNG. bp Trading and Shipping purchases 1.1 million tonnes a year of LNG from Oman LNG under a seven-year deal that started in 2018.
Partnership
bp is the operator of Block 61 and holds a 40% interest. Makarim Gas Development Limited (OQ) holds a 30% interest, PTTEP holds 20% and PC Oman Ventures Limited, a wholly owned subsidiary of Petronas, holds 10%.
Timeline:
- 2007: production sharing agreement for Block 61 Khazzan field signed.
- 2007-2013: appraisal confirmed existence of significant tight gas resources.
- 2013: first phase of field development, Khazzan, sanctioned.
- 2016: bp signed an agreement with the Government of the Sultanate of Oman to amend the Block 61 Exploration and Production Sharing Agreement (EPSA). This added a further 1,150km2 to the south and west of the original 2,800km2 Block 61 development, allowing a second phase of development, Ghazeer.
- September 2017: first gas from Block 61 Phase 1 Khazzan project delivered ahead of schedule.
- April 2018: second phase of field development, Ghazeer, sanctioned.
- January 2019: bp and ENI sign heads of agreement with the Government of the Sultanate of Oman to work jointly towards a significant exploration opportunity in Block 77. Six months later an EPSA was signed.
- March 2020: royal decree permits exploration activities in Block 77 to progress, including seismic data processing and the drilling of one exploration well within the next three years.
- October 2020: first gas from Ghazeer delivered ahead of schedule.
- February 2021: bp welcomes PTTEP to Block 61 partnership.
Outside Block 61
- Lubricants are distributed through the Oman Oil Marketing Company SAOG (OOMCO), which markets both bp and Castrol brands through a network of OOMCO-branded forecourts, Lubesplus sites and high street retailers.
- Air bp provides technical advice, training and management services related to aviation operations and marketing.
- bp Marine manages an extensive fuel bunkering operation at Salalah Port in southern Oman.
Developing our people
Our people are our most valuable asset and central to our success. We're committed to developing a world class team who live our values every day. To achieve this, we’re focused on developing great leaders, creating a truly global workforce and growing the right capabilities – underpinned by a safe, diverse and inclusive culture, where everyone feels valued and able to deliver to the best of their abilities.
People at bp Oman
In July 2022 we launched our book, ‘People at bp Oman’, a celebration of development journeys and achievements.
The people-focused publication highlights bp’s commitment towards strengthening the skills and capabilities of people in Oman through our various development opportunities. This delivers on Oman’s 2040 vision of enriching the local labour market and bp’s sustainability aims of improving people’s lives. The book also looks at key statistics around staff development.
‘Omanisation’
bp is committed to the development of a national workforce in Oman. In 2020, Omani nationals represented over 85% of bp’s workforce in the Sultanate – this is set to grow to 90% by 2025.
Graduate programme
The bp Challenge programme was launched in the UK in the early 1990s and was introduced to Oman in 2010. The competency-based programme is designed to prepare graduates for roles across bp Oman’s business. It helps bring consistency in leadership and technical development across the wider company.
Over 80 Omani graduates have been recruited to date via the Graduate Challenger programme. They have focused career plans as well as building skills in other disciplines.
Developing Omanis abroad
Working abroad is a recognized way to gain and share knowledge and experience. bp Oman currently has several staff working in some of bp’s worldwide operations, helping to boost their capabilities, including those who hold senior positions.
Technician development programme
In 2012 the company set up its Technician Development Programme, with candidates coming in from technical colleges and universities across the Sultanate to complete a four-year programme, including 18 months working towards a National Vocational Qualification. More than 100 technicians were trained, many of whom now work at Block 61 as mechanical, electrical and production engineers. Some of these technicians and graduates have also had the opportunity to work with bp’s partner OQ and Oman LNG, thanks to an agreement between the three companies.
Our commitment
bp Oman’s overall goal is to create a sustainable legacy that supports Oman’s strategic goals for energy security and long-term economic diversification, whilst empowering local people, helping create a self-sufficiency and progressive future.
Prioritizing in-country value
We’re proud to support the sustainable development of Omani society, which we do through three main strategies:
- supporting local business growth and overall economic productivity
- encouraging the development of Omani skills and capability; and
- generating employment and training opportunities.
As a result of our commitment to maximising in-country value, spend with Omani registered companies exceeded $610 million in 2020. We recognize the benefits international suppliers bring to the local market in terms of technology transfer, employment, training, and building capability to international standards.
As an example, we’re supporting a local company to become a global market leader in providing well stimulation services and compete with multinational companies in the Middle East and beyond.
Social investment
bp Oman’s long-standing social investment programme is a unique model that works towards serving and empowering local Omani capabilities in driving Oman towards a self-sufficient and progressive future.
Over 94,000 people have benefitted directly through 106 initiatives since the launch of the programme in 2014. Initiatives are delivered under three main themes: enterprise development, education and energy sustainability.
bp’s office in Oman
BP Exploration (Epsilon) Ltd
PO Box 1649, PC 130 (Al Aziba) Muscat
Bait Salam Building
Sultanate of Oman
Office: (00968) 22839000
Fax: (00968) 24602044
