BP awards $730m contracts for Oman gas field

BP Oman has awarded two long-term drilling contracts with a value of more than $730 million (£453m). The Khazzan Project involves a drilling programme of around 300 wells in total […]

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By Priyanka Shrestha

BP Oman has awarded two long-term drilling contracts with a value of more than $730 million (£453m).

The Khazzan Project involves a drilling programme of around 300 wells in total over 15 years to deliver production of around one billion cubic feet of gas per day.

That’s equivalent to an increase of around a third of Oman’s total daily domestic gas supply, BP said.

TKCA Deutag won one of the contracts worth more than $400 million (£248m) for the construction and operation of five new rigs for the Khazzan project.

The second $330 million (£205m) contract was given to Oman’s Abraj Energy Service to supply three drilling rigs for the full field development.

Construction work for the Khazzan Project has started and first gas is expected in late 2017.