The UK’s BP has received commercial proposals for the main package on its $15bn-plus Khazzan tight gas development in Oman, according to sources close to the bidding process.
Four consortiums submitted engineering, procurement and construction (EPC) bids on 18 January for the project’s surface facility package, which covers central processing facilities, the gas processing plant, flowlines, pipelines and associated facilities. Technical bids were submitted earlier in the month.
The bidding consortiums are:
- Bechtel Corporation (US)/Bhawan Engineering Company (local)
- CB&I (US)/Larsen & Toubro (India)
- Petrofac (UK)/Consolidated Contractors Company (Athens-based)
- Technip (France)/Galfar Engineering & Contracting (Oman)/Al-Hassan Engineering Company (local)/Special Technical Services (local)
The proposed plant in west-central Oman is expected to produce about 1 billion cubic feet a day (cf/d) of sales gas once the project goes on stream.
The surface facility is the largest of several packages tendered by BP as part of the Khazzan tight gas development. Other contracts include the early development phase, gas gathering, wellsides & export system (GWES) facility, and the building & infrastructure works.
Commercial proposals were also submitted for the building and infrastructure works in January, according to industry sources, with Bechtel, Oman-based Carillion Alawi and Australia’s WorleyParsons among the companies involved in the bidding.
Meanwhile, BP is carrying out an ongoing appraisal and testing programme on the Khazzan project. The company is also in talks with Oman’s Ministry of Oil & Gas to finalise a commercial agreement for the development later in 2013.
Khazzan, which is located in the Block 61 concession in Ad Dhahirah governorate, west-central Oman, is one of the world’s greenfield tight gas projects. The reserves are trapped at 4.5-5 kilometres below the surface and because the gas does not flow to the surface naturally, BP will have to hydraulically fracture the formations to release the gas.