Gulf Construction Online - Petrofac wins $808m gas project deal

Regional News

The Khazzan project in Oman ... Petrofac to build a central processing facility.

Petrofac wins $808m gas project deal

01 January 2018

British oilfield services firm Petrofac has been awarded a lump-sum contract worth $800 million by BP for the development of a central processing facility (CPF) at the Khazzan Phase Two (Ghazeer) gas project in Oman.

BP Oman is lead partner in the Khazzan project with a 60 per cent interest, while Oman Oil Company Exploration and Production holds 40 per cent. This follows the $1.4-billion Phase One CPF Khazzan project, awarded to Petrofac in February 2014, which celebrated first gas in September this year, said Petrofac.

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

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 One and Two facilities.

On the big win, Petrofac Group CEO Ayman Asfari said: “We have 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.”

Bernard Looney, the CEO for Upstream at BP, said: “The successful start of production from Khazzan Phase One 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 the development of the second phase and this award to Petrofac will continue the relationship that delivered Phase One.”