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BP extends scope of Khazzan gas field development in Oman

LONDON (Reuters) - Britain's BP and partner Oman Oil signed an agreement on Sunday to develop a second phase of the Khazzan natural gas field, taking the estimated investment in the project to $16 billion (11.03 billion pounds), the company said.

The agreement with the government of Oman will add more than 1,000 square kilometres to the original 2,700 square kilometre block, which is expected to start delivering gas in late 2017, BP said.

The second phase is expected to come on stream in 2020, and together they are expected to produce 1.5 billion cubic feet of gas per day, the oil major said in a statement.

BP is the operator of the block, with a 60 percent interest. State-owned Oman Oil holds the other 40 percent.

(Reporting by Paul Sandle, editing by Larry King)