Petrofac secures $800m contract for Khazzan phase 2 in Oman

British oil and gas services firm Petrofac has secured an $800m contract from BP for the Phase 2 central processing facility (CPF) at the Khazzan Phase 2 (Ghazeer) gas development in the Sultanate of Oman.

The latest development follows Petrofac being awarded the $1.4bn Phase 1 CPF Khazzan project in February 2014.

Under the second phase of the project, a third gas train with a capacity for nominally handling 500 million standard cubic feet of gas per day (mmscfd) will be added to help drive increased total production capacity from the CPF to 1,500mmscfd.

Petrofac Group chief executive Ayman Asfari said: “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.”

As per the contract, Petrofac is required to offer engineering, procurement, construction and commissioning (EPCC) services, including liquid and compression trains and associated infrastructure, as well as brownfield work associated with connecting the Phase 1 and 2 facilities.

Petrofac Group operations senior vice-president Elie Lahoud said: “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 holds a 60% interest in the Khazzan project, with Oman Oil Company Exploration & Production owning the remaining 40% stake.