BP has begun producing natural gas from Oman’s Khazzan gas field, Egypt Oil & Gas reports.

The field is currently in the first phase of development. During this phase, production is expected to reach 1 billion cubic feet of gas per day (bcf/d) after the drilling of 200 wells.

The project “will result in realizing more gas reserves and more production of gas that our country needs to support our energy planning and requirements,” Oman’s Minister of Oil and Gas, Mohammed El Rumhy, said.

After the completion of the second phase of the project, production is expected to rise to 1.5 bcf/d after the drilling of 100 additional wells.

Production from the field is expected to meet approximately one-third of Oman’s domestic demand, Financial Times reports.

The gas is located at depths of up to five kilometers in dense rock formations. Development of the site is expected to cost $16 billion and requires the use of the advanced fracking technology developed in the United States, Financial Times reports.

The company estimates that its investments will allow it to recover 10.5 trillion cubic feet (tcf) of natural gas.

The Khazzan field is located in Oman’s Block 61. It is joint project of BP and the Oman Oil Company. BP possesses a 60% stake while the Oman Oil Company has a 40% stake.