BP awards gas drilling contracts on Oman

MUSCAT, Oman, Oct. 1 (UPI) —

British energy company BP said Wednesday it awarded two drilling contracts to help tap into the unconventional gas potential in the sultanate of Oman.

BP Oman awarded a combined $730 million in drilling contracts to Oman’s Abraj Energy Service and KCA Deutag for operations in the Khazzan project in Oman.

Khazzan entails exploitation of what BP says is one of the largest deposits of natural gas of its kind in the Middle East. Full development involves the drilling of around 300 wells over a 15-year time span. Peak production could reach 1 billion cubic feet per day, about one third of Oman’s total daily domestic gas supply.

Khalid al-Kindi, deputy general manager for BP Oman, said drawing on local drilling talent was part of the subsidiary’s national strategy.

"Building local content into our supply chain is a key focus area in BP’s procurement strategy," he said in a statement. "BP is committed to hiring and developing talented Omanis."

Oman is the largest regional oil and gas producer that’s not a member of the Organization of Petroleum Exporting Countries.