BG Droup - Oman Onshore Block 60 concession

Project name:  BG Group - Onshore Block 60    concession
Name of client:  PDO - Petroleum Development    Oman
Budget:   $1 billion
Main contractor: Not yet appointed
Facility type:  Oil & Gas Field
Status:   PMC
PMC:  Not yet appointed
Location: Oman

Project status
In May 2010, EPC bids were submitted. BG was also in talks with engineering companies for the Feed of the project.
On June 12, 2010, BG Group decided to abandon the project. Contractors say they have not been formally notified of BG's decision to quit on the development. BG and the Oman government are in talks to find the best way forward.
Subsequently, the Oman government began talks with potential operators to take over the Block 60 concession. A new operator is targeted to be appointed before the end of 2010.

Project scope
The onshore block was part of the Block 6 concession area operated by Petroleum Development Oman and covers about 1,500 sq m, including the Abu Butabul field. Gas and condensate were discovered in Abu Butabul in 1998. Estimates for reserves in the block range from 20 trillion-60 trillion cubic feet.

BG now plans to acquire seismic data. Production could begin by 2010 if commercial quantities of reserves are found.
Gas from the field could be sold into the local network; any condensate is likely be exported.

Project structure
The field is owned by Petroleum Development Oman.

Schedules for this project
May 2006 EPSA agreeement signed
Q2 2010  On hold