The government of Oman and British energy major BP have reached a “conceptual deal” to jointly develop the Khazzan tight gas project, according to the sultanate’s oil minister.

The two parties are negotiating a profit-sharing agreement on developing an estimated $15bn-plus project to significantly increase Oman’s gas output by 2017.

“BP, according to their contractual obligations, has to declare commerciality by February next year. So, theoretically, we have to finish all of the discussions before then, for them to proceed to the next step, which is (commercial) development,” Oman’s Minister of Oil & Gas Mohammed bin Hamad al-Rumhy told the state-owned Oman Daily Observer.

“But we have reached a conceptual agreement with BP. Now it’s just a question of finalising the paperwork, so to speak,” the minister added.

Last week, BP asked for contact details from companies interested in providing waste management services at the project, which is located in on Block 61 in west-central Oman.