BP, Oman Oil Sign Deal to Expand License Area of Oman Gas Field

By Ian Walker

LONDON--Oil major BP PLC (BP.LN) said Tuesday it and partner Oman Oil Exploration & Production signed an agreement with the government of Oman amending the Oman Block 61 exploration- and production-sharing agreement to extend the license area, paving the way for further development of the giant Khazzan tight gas field.

BP, which is the operator of the block with a 60% interest, said the extension adds more than 1,000 square kilometers to the south and west of the original 2,700 square kilometers of Block 61.

"The extension will allow a second phase of development, accessing additional gas in the area already identified by drilling activity within the original block," BP said.

Development is subject to final approval of the Oman government and BP, expected in 2017, BP said.

Write to Ian Walker at [e-mail]; @IanWalk40289749

(END) Dow Jones Newswires

November 08, 2016 05:40 ET (10:40 GMT)

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