BP Oman awards $10mn construction contract

Deal was signed with Omani firm Galfar Engineering and Contracting

BP is a major oil and gas operator in Oman.
BP is a major oil and gas operator in Oman.

BP Oman has awarded a $10mn construction contract to Galfar Engineering and Contracting, Trade Arabia reports.

The deal includes the installation and commissioning of a 26-km overhead line on concrete poles/steel towers from Petroleum Development Oman (PDO) Musallam 132-kV substation to the proposed BP Khazzan 132-kV switchyard.

Galfar has also been awarded the the construction and commissioning of the 132-kV switchyard and control building at Khazzan field.

In January 2007 BP signed an exploration and production agreement with the government of Oman for the development of Block 61 and the Khazzan and Makarem gas fields.

The agreement covers an area of some 2,800 km2 in central Oman, which contains a number of 'tight gas' reservoirs which were first discovered in the 1990s.

The Khazzan Project will provide new gas supply to Oman on a significant scale with first gas targeted in late 2017.

"The project will achieve production of around 1bn cubic feet of gas per day, equivalent to an increase of around a third of Oman’s total daily domestic gas supply," BP said.

"The Khazzan Project represents the first phase in the development of one of the Middle East region’s largest unconventional tight gas accumulations, which has the potential to be a major new source of gas supply for Oman over many decades," it added.

BP is the operator of Block 61 and holds a 60% share in the concession. Its partner in the development is the Oman Oil Company for Exploration and Production, which holds a 40% share.

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