Petrofac awarded $800m contract by BP

FTSE 250 oilfield services group Petrofac has been awarded a lump-sum contract worth around $800m by BP for the Phase 2 central processing facility (CPF) at the Khazzan Phase 2 gas development in the Sultanate of Oman.

The project comprises the addition of a third gas train with a capacity for nominally handling 500m standard cubic feet of gas per day, which will help drive increased total production capacity from the CPF to 1,500 mmscfd. The engineering, procurement, construction and commissioning scope of work also includes liquid and compression trains and associated infrastructure, as well as brownfield work associated with connecting the Phase 1 and 2 facilities.

Petrofac's chief executive, Ayman Asfari, said: "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 the next phase of this pioneering project in Oman. We have a very strong record for project execution in Oman and as part of this have delivered significant in-country value.

"We look forward to continuing to demonstrate our commitment to a sustainable and long-term presence in the Sultanate through the safe and timely delivery of this project for BP."

BP Oman is lead partner in the Khazzan project with a 60% interest, while Oman Oil Company Exploration & Production holds the rest.

At 1555 GMT, the shares were up 3.6% to 450.60p.