The UK’s BP is expecting to sign the final commercial agreement on the $15-20bn Khazzan tight gas scheme with the Omani government by the end of 2013. The firm is also in discussion over a new petrochemicals project in the sultanate, according to its chief executive officer, Bob Dudley.

“In May, we reached the heads of agreement and outlined the major terms,” Dudley said at the Abu Dhabi International Petroleum Exhibition and Conference (Adipec) in Abu Dhabi on 10 November. “That was a big step forward and now we are in the final steps of signing multiple agreements.”

“Discussions with Oman’s oil and gas ministry and Oman Oil Company (OOC) have been very, very good and we’re looking forward to signing a multi-decade partnership in the sultanate.”

OOC is expected to take a stake in the 1 billion-cubic-feet-a-day (cf/d) scheme after the final investment decision is completed, with the engineering, procurement and construction (EPC) contract on the central processing facility also expected to be awarded soon after.

Dudley said BP was also in discussions over a potential new petrochemicals project in Oman.

“We are also talking with [the government] about a chemicals joint venture, as well some new acetic acid technology,” he said. “Fingers crossed on that.”