Petrofac wins $800mn contract from BP for Khazzan phase 2 in Oman

Petrofac wins $800mn contract from BP for Khazzan phase 2 in Oman
The project comprises the addition of a third gas train with a capacity for nominally handling 500 million standard cubic feet of gas per day.
Published: 14 December 2017 - 2 a.m.
By: Martin Menachery

Petrofac has been awarded a lump-sum contract worth approximately $800mn by BP for the Phase 2 central processing facility (CPF) at the Khazzan Phase 2 (Ghazeer) gas development in the Sultanate of Oman.

This follows the $1.4bn Phase 1 CPF Khazzan project, awarded to Petrofac in February 2014, which celebrated first gas on 22 September this year.

The project comprises the addition of a third gas train with a capacity for nominally handling 500 million standard cubic feet of gas per day (mmscfd), which will help drive increased total production capacity from the CPF to 1,500mmscfd.

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

Ayman Asfari, group chief executive, Petrofac, commented: “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.  We look forward to continuing to demonstrate our commitment to a sustainable and long-term presence in the Sultanate through the safe and timely delivery of this project for BP.”

Bernard Looney, chief executive, upstream, BP, 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.”

Elie Lahoud, senior vice president, operations, Petrofac, said: “We are proud to have been part of the Khazzan journey since the outset of Phase 1.  This new award comes shortly after the start of production from the Phase 1 CPF facilities in September. That achievement provides us with a proven delivery model that, coupled with the knowledge gained from the earlier project and the strong support from our contractors, positions us well to deliver a great project for BP and Oman.”

BP Oman is lead partner in the Khazzan project with a 60% interest. Oman Oil Company Exploration & Production holds 40%.

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