BP invites bids on Khazzan gas pipelines

15 October 2014

Companies asked to submit proposals for export, condensate and gas gathering pipelines

The UK’s BP has invited companies to bid on major pipeline packages of the Khazzan tight gas development in north-central Oman, according to a source familiar with the project.

BP, the operator of the estimated $16bn scheme, tendered three engineering, procurement and construction (EPC) packages covering the export pipeline, condensate pipeline and gas gathering pipelines.

Companies were asked to submit technical proposals on the gas gathering pipelines by 16 October. The package will cover a large, dispersed, buried gathering system to transport multi-phase gas condensate from the well sites to the under-construction Khazzan central processing facility (CPF). It will comprise more than 400 kilometres of pipelines.

The deadline for EPC bids on the gas export pipeline has been set for 6 November. The package will connect the Khazzan CPF to the gas network at Saih Nihayda through a 60km, 36-inch pipeline.

BP has asked companies to submit bids on the development’s condensate pipeline by 13 November. The package comprises the construction of a 12-inch, 68km pipeline to transport the stabilised condensate from Khazzan to Petroleum Development Oman’s (PDO’s) pipeline network at Yibal.

The government gave the final go-ahead for BP to develop the Khazzan tight gas field in December 2013, following months of negotiations.

In February this year, BP awarded the first major construction contract on Khazzan. A consortium of the UK’s Petrofac and Athens-based Consolidated Contractors Company (CCC) was awarded a $1.2bn EPC contract on the CPF.

The first gas is due to be produced from the CPF in 2017, with production ramping up to full capacity in 2018.

US-based Jacobs Engineering was awarded a contract for project management on $2bn-worth of EPC work on gas gathering pipelines, wellhead production facilities and export pipelines, along with process and infrastructure work.

Earlier in October, BP said it had awarded the UK’s KCA Deutag a $400m deal for five new-build land rigs and a $330m contract to the local Abraj Energy Service to supply three rigs for the full-field development. The firm has also awarded a $50m deal to French group Veolia to build permanent water treatment facilities at the site.

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