Oman tenders project management deal for Khazzan phase two

27 March 2017

Phase one to come online by end of 2017

Oman has tendered the project management consultancy (PMC) contract for phase two of UK-based BP’s Block 61 development, according to sources close to the scheme.

Five companies have been prequalified to participate in the development of the Ghazeer field, which adjoins BP’s massive tight gas development at Khazzan. Bids are expected to be submitted in April 2017. MEED reported that the tender for the engineering, procurement and construction (EPC) contract is expected in May.

The companies prequalified to bid for the PMC contract are:

  • Bechtel (US)
  • WorleyParsons (Australia)
  • Amec Foster Wheeler (UK)
  • Jacobs (US)
  • KBR (US)

Oman has only 25 trillion cubic feet of proven gas reserves, according to BP’s 2016 Statistical Review of World Energy. Much of the reserves are tight gas and Oman is looking to increase output to meet rising demand through the development of the massive Khazzan and Makarem fields.

The Ghazeer field project will deliver 500 million cubic feet a day (cf/d) by 2020, according to a recent statement by BP.

When Ghazeer comes on stream, combined production from both fields will reach 1.5 billion cf/d, increasing Oman’s gas production by a total of 40 per cent.

The first development well has been drilled at the Ghazeer block, where 125 wells are expected to be drilled over the lifetime of the project. More wells are expected to be drilled this year at the concession, which is estimated to hold 3.5 trillion feet of accessible gas.

Apart from boosting domestic output, Oman is looking to its gas-rich neighbour Iran – which has reserves of about 1,201 trillion cubic feet – for gas imports.

Both countries are pushing ahead with the development of a subsea gas pipeline that will deliver 350 billion cubic feet of Iranian liquefied natural gas (LNG) by 2020.

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