BP is advancing a front-end engineering and design (FEED) contract for the expansion of its operated Block 61 asset onshore Oman, a key gas-producing area. The block, containing the Khazzan and Ghazeer fields, has substantial production and resources, contributing significantly to Oman's gas supply.

Project Scope and Objectives

The FEED contract focuses on a compression and electrification project. Its core objective is to develop the engineering definition for this project, aiming to deliver maximum value to the Block 61 joint venture and align with Oman's net-zero ambitions. Key facilities include a central processing facility (CPF), electrification works, early works execution, and brownfield scope. The CPF involves installing independent electrically driven compression trains for the Khazzan and Ghazeer systems, along with associated utilities and new substations.

Contractor Bidding and Evaluation

At least five international contractors recently submitted technical and commercial offers for this FEED contract. The bidders reportedly include Wood, Petrofac, Worley, KBR, and Kent. BP is currently evaluating these bids and is expected to select its preferred contractor by the first quarter of the next year. The project is described as a 'fast-track' initiative, indicating BP's intention to proceed without delay.

Technical Details of the Project

The FEED contractor's scope encompasses the complete system design and an assessment of the impact on the project's existing facilities. The electrification element specifically includes installing a new 132/33 kilovolt substation near the CPF and a new overhead line connecting this substation to a tie-in point. The early works component involves all preparatory activities required to deliver the CPF and electrification scope, enabling a successful project start.

Asset Background and Partnership

Block 61 is a major asset with an estimated 10.5 trillion cubic feet of recoverable gas resources. Production from the block averaged 1.534 billion cubic feet per day of gas and 38,253 barrels per day of associated condensate in a recent financial quarter. The operating partnership consists of BP (40% operator), OQEP (30%), PTTEP (20%), and PC Oman Ventures (10%).