(MENAFN- Muscat Daily) BP Oman on Wednesday announced the award of two long-term drilling contracts for the Khazzan project in Block 61.
KCA Deutag has been awarded over US$400mn contracts for the construction and operation of five new build land rigs for Khazzan.
The rigs are being assembled in Nizwa to maximise employment opportunities in Oman a company press release said on Wednesday. According to the second agreement Oman's Abraj Energy Service was awarded contracts worth more than US$330mn to supply three drilling rigs for the full-field development of the Khazzan project.
'We are pleased to announce these contracts which continue to progress our development of the gas resources at Block 61. Abraj Energy and KCA Deutag will play important roles in the massive drilling programme ahead. The selection of Abraj Energy demonstrates once again BP's commitment to in-country value' said BP Oman general manager Dave Campbell.
Khalid al Kindi deputy general manager for BP Oman said 'Building local content into our supply chain is a key focus area in BP's procurement strategy. BP is committed to hiring and developing talented Omanis. We are also implementing a significant multi-million dollar long-term social investment strategy to support education and enterprise development in Oman. All these are part of our commitment to deliver BP's in-country value plan.'
Since the approval of the Khazzan project BP has been actively awarding contracts to ensure that the project meets its deadlines. In addition to the announced contract awards several contracts valued around US$90mn have been awarded to local Omani companies for civil works including well pads and in-field roads.
More recently BP awarded contracts worth around US$16mn to several Omani companies to supply carbon-steel pipes and to manufacture supply and install a water pipeline. The water pipeline will be manufactured in Sohar.
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.
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