DUBAI, Oct 2 (Reuters) - BP said on Thursday it hasawarded two drilling contracts worth $730 million for thedevelopment of its Oman's Khazzan tight gas project, it said onThursday.
It said it has awarded work worth more than $400 million toKCA Deutag for the construction and operation of fiveland rigs for Khazzan and a $330 million contract to Oman'sAbraj Energy Service for the supply of three drilling rigs forthe full field development.
The Khazzan project, which aims to extract around onebillion cubic feet (bcf) per day of gas from sandstone with lowpermeability at depths of up to 4,500 metres in central Oman, isa showcase for BP's tight gas extraction technology.
Its success is vital for Oman whose own gas exports havebeen eaten away by its voracious appetite for energy.
In December BP signed the Khazzan gas deal, which involves a15-year programme of drilling into the sandstone thousands ofmetres below the surface to extract gas using hydraulicfracturing technology developed for shale gas and oil in theUnited States.
BP expects to invest around $9.6 billion over the full fielddevelopment, in accordance with its 60 percent stake in the $16billion project. State-owned Oman Oil Company Exploration &Production (OOCEP) will have a 40 percent stake. (Reporting by Rania El Gamal; Editing by Greg Mahlich)