BP and Oman Oil Company Exploration & Production (OOCEP) on Tuesday signed an agreement with the Oman government amending the Block 61 exploration & production sharing agreement (EPSA) to extend the licence area, paving the way for the second phase development of the giant Khazzan tight-gas field. Under the amended EPSA, the extension adds more than 1,000 sqkm to the south and west of the original 2,700 sqkm of Block 61. The extension will allow the second phase of development at Khazzan, accessing additional gas in the area already identified by drilling activity within the original block. Development of this additional resource is subject to final approval of the Oman government and BP – both expected in 2017. BP is the operator of Block 61 with a 60% interest and OOCEP holds the remaining 40%. Subject to final approval, the Khazzan phase two project is expected to come on stream around 2020. (Muscat Daily)