BP awards $730 mln Oman rig contracts.

British Petroleum (BP) has announced awarding two contracts for the construction and operation of drilling rigs for the Khazzan onshore gas project in the Sultanate of Oman, Construction Week Online reported.

BP awarded two deals worth $730 million for drilling rigs, of which the first amounts to $400 million with KCA Deutag to supply five new-build land rigs for the project. These new rigs will be assembled in Nizwa in order to increase employment opportunities for Omanis. Meanwhile, the second contract amounts to $330 million with Oman’s Abraj Energy Service, which is providing three rigs.


Commenting on the new awards, BP Oman general manager Dave Campbell said that these contracts will help BP continue to progress at Block 61. Abraj Energy Service and KCA Deutag will play important roles in the massive drilling programme ahead.

Furthermore, BP deputy general manager for Oman, Khalid Al Kindi said BP is committed to hiring and developing talented Omanis.“We are also implementing a significant multi-million dollar long term social investment strategy to support education and enterprise development in Oman,” he added.

It is worth noting that BP signed a $16 billion-deal to operate the Khazzan field with Oman's government in December 2013. BP holds a 60% stake in the project, while Oman Oil Company Exploration & Production (OOCEP) holds the remaining 40%.

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