UK oil major BP is eyeing a possible USD 15 billion investment in a tight gas project in Oman and plans to make a decision on whether to proceed in spring 2012.

Mr Bob Dudley CEO of BP said the World National Oil Companies Congress that “Today we have just three wells with plans to have 300 and this will be one of the largest projects, could be in BP's portfolio. However, high costs could scupper the project if BP is not able to agree a high enough price for the gas produced to compensate for these.”

Mr Mohammed bin Hamed al Rumhy Oman's Minister of Oil and Gas and chairman of state oil company Petroleum Development of Oman said that the gas would be sold to the local market, where prices are controlled.

Mr Al Rumhy said that the USD 15 billion cost estimate reflected expected expenditure over 10 to 15 years. Dudley refused to confirm the estimate.

(Sourced from Reuters)