The UK’s BP has awarded about $730m in long-term drilling contracts for its Khazzan tight gas project in central Oman, according to an announcement by the firm.

UK-based KCA Deutag was awarded more than $400m in deals for the construction and operation of five new-build land rigs, which are to be assembled in Nizwa.

The local Abraj Energy Service won more than $330m in contracts to supply three drilling rigs for the full-field development of the Khazzan project.

BP said several deals with a total value of $90m had also been awarded to local companies for civil works, including well pads and infield roads. The oil and gas company also awarded contracts worth a total of $16m to Omani groups to supply carbon steel pipes and to manufacture and install a water pipeline.

The estimated $16bn full-field development will involve a drilling programme of about 300 wells over 15 years, with target output equalling 1 billion cubic feet a day (cf/d) – about a third of the sultanate’s current gas production.

BP holds a 60 per cent interest in the project located in Block 61, with the remaining interest held by Oman Oil Company for Exploration and Production (OOCEP).