MEOG: bp extends EPC contract for Omani gas fields

bp has granted a three-year extension to a joint venture (JV) between Worley and Special Technical Services (STS) to continue providing engineering, procurement and construction (EPC) services for the Khazzan and Ghazeer gas assets in Oman’s Block 61. The joint venture operates under the name Special Technical Services Worley Integrated Solutions (SWIS).

The initial five-year contract was awarded to SWIS by bp in April 2018. The contract was extended for two years in 2022 before this latest three-year renewal.

According to a press release from Worley, the services under the contract include ongoing field development and brownfield modifications of operational assets, such as the central processing facility in Block 61. Gas produced from Block 61 is distributed domestically via Oman’s national gas grid and enhances the feedstock supply for Oman LNG.

Worley CEO Chris Ashton said: “We are pleased to continue our long-standing global relationship with bp to deliver services for bp’s Block 61 gas assets, which contributes to strengthening Worley’s backlog. SWIS has been working extensively with bp to improve all aspects of operational efficiency, and this award confirms the success of this continuing journey. We’re proud to support bp’s ongoing gas operations in Oman.”

bp is developing Block 61, which spans 3,700 square km, in two phases. The Khazzan field commenced production in 2017, producing 28mn cubic metres per day of gas. The Ghazeer field came on-stream in 2020, adding an additional 14 mcm per day.

In December 2021, bp and local firm Abraj Energy Services highlighted the completion of the first well stimulation in the concession. Abraj, established in 2006 and owning 19 land rigs, is a drilling unit of Oman’s state oil firm OQ. Last year, 49% of Abraj was listed during an initial public offering (IPO).

March 2023 saw Abraj renew its contract with the local arm of Indonesia’s Medco Energi for supplying the 1,000-hp Abraj 105 drilling rig for operations in the Karim field. Abraj has provided rig services to Medco since 2010.

In February, Abraj won a contract from state-backed Petroleum Development Oman (PDO) to cover hydraulic fracturing work on low-pressure wells. This contract followed a $4bn maintenance award from PDO to Arabian Industries Projects and STS for work on Block 6, which has an estimated 75% of Oman’s remaining oil reserves.

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