20th Feb 2014 08:36
LONDON (Alliance News) - Petrofac Ltd Thursday said it has been awarded a contract by BP, worth roughly USD1.2 billion for work at the central processing facility for the Khazzan gas project in Oman.
The major oil and gas engineering company said the contract is for engineering, procurement and construction of the facility, which will include two process trains, each having a capacity of 525 million standard cubic feet of gas per day.
The company said the project also includes an associated condensate processing system, power generation plant, water treatment system and all associated utilities and infrastructure.
Petrofac said the project is expected to be completed in 2017.
BP announced a deal with the government of Oman to improve the Khazzan field in December, including plans to develop 300 wells over 15 years that are expected to produce one billion cubic feet of gas per day and 25,000 barrels per day of gas condensate at peak levels, one third of Oman's daily domestic gas supply.
"We have a very strong record for project execution in Oman with this project representing Petrofac's eighth EPC contract in the Sultanate and follows the recent award of the USD2.1 billion Sohar refinery improvement project which was announced in November," Managing Director of Petrofac, Subramanian Sarma said in a statement.
Petrofac shares were up 2.7% to 1,365.45 pence making it the top FTSE 100 riser in early trading Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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