BP awards $3b worth gas projects in Oman

Posted on 17th April 2014

British oil giant BP has awarded projects worth $3 billion since February this year for developing the Khazzan tight gas field in north-central Oman as reported by Times of Oman. Oman government and BP have signed an agreement for the full field development of Block 61, with a total capital expenditure of $16 billion for drilling 300 wells, a gas-processing plant and related facilities.

"We are in action…we have already started drilling our first development well, building roads and designing buildings. We have two rigs (at the concession area) and three rigs are arriving later this year." Dave Campbell, vice-president of operations, BP Oman, told journalists on the sidelines of the ninth annual asset integrity management summit jointly organised by IQPC and Global Exhibitions and Conferences.

Petrofac was awarded a $1.2 billion-engineering, procurement and construction contract by BP for building the central processing facility (CPF) with a capacity to process one billion cubic feet (bcf) of natural gas per dayfor the Khazzan gas project. The gas processing plant is expected to be completed in 2017. Another contract awarded on the project was for process and infrastructure work to Jacobs Engineering Group.

Referring to the in-country-value initiatives of BP, he said the company is working on a strategy to pass on the business opportunities to small and medium enterprises and local contractors. BP has already awarded a contract for designing and building a water pipeline network to an Omani company. The company has also started recruiting technicians for the project, who will be trained at BP's training facility of $16 billion.

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