BP Awards Drilling Contracts for Oman Tight Gas Project

BP Oman on Wednesday announced the award of two long term drilling contracts for the Khazzan tight gas project in Block 61.

KCA Deutag has been awarded more than $400 million contracts for the construction and operation of five new build land rigs for Khazzan.

According to the second agreement, Oman’s Abraj Energy Service has been awarded more than $330 million contracts to supply three drilling rigs for the full field development of the Khazzan project, BP said.

“We are pleased to announce these contracts which continue to progress our development of the gas resources at Block 61,” said BP Oman General Manager Dave Campbell.

Sanctioned in December 2013, the Khazzan project represents the first phase in the development of one of the Middle East region’s largest unconventional tight gas plays.

Khazzan has the potential to be a major new source of gas supply for Oman for many decades, according to BP.

BP is the operator of Block 61 and holds a 60% interest. The Oman Oil Company for Exploration and Production holds remaining 40% interest.

The full field development of the Khazzan project will involve a drilling program of around 300 wells over 15 years to deliver plateau production of one billion cubic feet (28.3 million cubic metres) of gas per day.

First gas is expected in late 2017.