BP has awarded two drilling contracts worth US$730mn for the development of Khazzan tight gas project onshore Oman’s Block 61
The company said that the first contract was won by the UK-based KCA Deutag to construct and operate five land rigs worth US$400mn in Khazzan tight gas project.
The second contract to Abraj Energy Service will take care of the supply three drilling rigs worth US$330mn for the full gas field development.
Holding a 60 per cent stake in the US$16bn Khazzan tight gas project, BP will invest around US$9.6bn for field development. State-owned Oman Oil Company Exploration & Production (OOCEP) has remaining 40 per cent stake. The project is expected to extract around 2.9bn cubic metres of gas per day.
A company official said that the project is one of the Middle East’s largest tight gas plays, having potential to serve as a major source of gas supply for Oman.
In December 2013, BP had signed the Khazzan tight gas deal, which involves a 15-year programme of drilling into the sandstone to extract gas using hydraulic fracturing technology developed for shale gas and oil.
