Petrofac has bagged a contract worth around $800m from BP for the Phase 2 central processing facility (CPF) at the Khazzan Phase 2 (Ghazeer) gas development located in the South of Block 61 in Oman.

In the Phase 2 CPF project, a third gas train is planned to be added which will have a capacity for nominally handling 500 million standard cubic feet of gas per day (mmscfd). The new gas train will help in expanding the total production capacity from the CPF to 1,500mmscfd. 

The engineering, procurement, construction and commissioning (EPCC) scope of work will also see addition of liquid and compression trains and associated infrastructure, along with brownfield work associated with connecting the Phase 1 and 2 facilities.

Petrofac Group CEO Ayman Asfari said: “Petrofac has executed a large number of projects for BP across many aspects of our business and we are delighted to be supporting them on the next phase of this pioneering project in Oman. 

“We have a very strong record for project execution in Oman and as part of this have delivered significant in-country value.”

In early 2014, the UK-based oilfield services provider had won a contract for the $1.4bn Phase 1 CPF Khazzan project. First gas from the project was produced in late September this year.

BP upstream CEO Bernard Looney said: “The successful start of production from Khazzan Phase 1 was a major milestone for BP in 2017.

“We are now building on this, deepening our partnership with the Sultanate of Oman, as we work towards development of the second phase and this award to Petrofac will continue the relationship that delivered Phase 1.”

Located 350km south of Muscat, work on the $16bn Khazzan tight gas project commenced in 2014. Upon its completion, the project is expected to contribute around a third of Oman’s natural gas supply.

BP Oman with a stake of 60% is lead partner in the Khazzan project while the remaining 40% stake is held by Oman Oil Company Exploration & Production.

Image: Khazzan tight gas project in Oman. Photo: courtesy of Petrofac Limited.