Petrofac News 1700X397
20 February 2014

Petrofac awarded Khazzan CPF project in Sultanate of Oman

Petrofac, the international oil and gas services provider, has been awarded a contract by BP, worth approximately US$1.2 billion, for the central processing facility (CPF) for the Khazzan gas project in the Sultanate.  This has been awarded on a convertible lump sum basis and will convert to a full lump sum contract at a pre-determined point during execution.

The scope of work will include engineering, procurement and construction (EPC) of the central processing facility (CPF) at the Khazzan field.  The CPF will include two process trains, each having a capacity of 525 million standard cubic feet of gas per day.  The project also includes an associated condensate processing system, power generation plant, water treatment system and all associated utilities and infrastructure.  The project is expected to be completed in 2017.

Subramanian Sarma, Managing Director of Petrofac's Onshore Engineering & Construction business, commented:  “Petrofac has executed a large number of projects for BP across many aspects of our business and we are delighted to be supporting them on this pioneering project at Khazzan, the largest new upstream project in Oman.  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 US$2.1 billion Sohar refinery improvement project which was announced in November.  Furthermore, consistent with our commitment to developing Omani in-country value whilst also providing opportunity for local content wherever we work, we will also seek to do so for the duration of this contract via the supply chain and recruitment of local resources.”