EXCLUSIVE: Second train of Oman gas project due to come online before 2018

02 October 2017
Project is worth a total of $1.3bn

The second train of the central processing facility (CPF) being built to serve Oman’s Khazzan and Makarem fields is due to come online before the end of the year, according to industry sources.

The first train came online on in the second half of September.

The engineering, procurement and construction (EPC) contract for the CPF is worth $1.3bn, and was awarded to a joint venture of UK-based Petrofac and Lebanon-based CCC in February 2014.

The CPF contract is part of a multibillion dollar scheme to develop the Block 61 concession in Oman.

The production sharing agreement between the oil major and Omani operator for Block 61 was signed in 2007, amended in 2013 and extended last year.

Oman has only 24.9 trillion cubic feet of gas - some of the smallest reserves in the region. In comparison, its Gulf neighbours Iran and Qatar are estimated to hold 1,183 trillion cubic feet and 858.1 trillion cubic feet of gas, according to BP Statistical Review of World Energy 2017.

The sultanate has prioritised the development of gas reserves in order to meet rising domestic demand as well as for export purposes.

Apart from its massive tight gas development project in Block 61, Oman is looking to import gas from Iran.

Both countries are pushing ahead with the development of a subsea gas pipeline to deliver around 350 billion cubic feet of liquefied natural gas by 2020.

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