BP share price: Group starts production at giant Oman gas field

Oil major looks to replenish production base

BP share price: Group starts production at giant Oman gas field

BP’s (LON:BP) has kicked off production from the giant Khazzan field in Oman, the oil major has said. The project is part of the group’s efforts to replenish its production base.

BP’s share price has gained ground in London today, having added 0.76 percent to 475.65p as of 10:27 BST, outperforming the broader UK market, with the benchmark FTSE 100 index having slipped into the red and currently standing 0.12 percent lower at 7,292.86 points. The group’s shares have added a little over 10 percent to their value over the past year, but are down by some six percent in the year-to-date.

BP announced in a statement yesterday that production had begun from the giant Khazzan gas field, which is operated by the oil major in partnership with Oman Oil Company Exploration and Production. The news marks the FTSE 100 group’s biggest start-up this year.

“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,” BP’s chief executive Bob Dudley commented in the statement, adding that the company had used tight gas techniques developed in the US.

The Financial Times noted in its coverage of the news that Khazzan was brought on stream as the oil major looks to replenish its production base after years of retrenchment since the 2010 Deepwater Horizon oil spill. The group aims to deliver 800,000 barrels a day of new production by the end of the decade — equivalent to a third of its current output of about 2.4 million barrels a day – with much of this set to come in the form of gas.

The news comes with BP believed to be close to triggering a search process to replace its chairman, Carl-Henric Svanberg, who took the reins of the group in January 2010. 

As of 10:55 BST, Tuesday, 26 September, BP plc share price is 474.50p.

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