KBR, the US energy and LNG engineering company, said it was awarded a front-end engineering and design contract by Oman LNG for the debottlenecking of liquefaction facilities at the port of Sur on the Arabian Peninsula.
“This project builds on KBR's extensive track record of developing and implementing LNG projects and providing solutions to complex developments around the world,” said Jay Ibrahim, KBR President for Energy Solution Services.
The Omani facilities export to Japan, South Korea and the spot market and comprise the amalgamated three liquefaction Trains of Oman LNG and Qalhat LNG, now producing more than 10 million tonnes per annum.
The Sultanate has revitalised its LNG production after the Khazzan natural gas discovery by BP and the plants near the port of Sur have been at near nameplate capacity since 2017.
The three Trains had previously suffered from a lack of feed-gas as supplies were diverted to fill domestic gas shortages.
The Omani government allocates Oman LNG feed-gas supplies from various gas fields and the Khazzan field production has ended all resource concerns for the near future.
Houston, Texas-based KBR explained that it would act as an extension to Oman LNG's project team and help manage the overall execution of the debottlenecking efforts, whereby better output can be achieved by fixing inefficiencies, both technical and operational.
“The contract underpins Oman LNG's robust commitment towards knowledge-sharing and boosting staff competency in dealing with such complex projects,” said KBR.
KBR’s Ibrahim said the company was excited to be a part of this important project and to continue to grow and maintain its presence in Oman.
French energy major Total and Oman recently signed an accord for the development of an onshore natural gas block that will provide feed-gas for separate LNG production reserved for LNG fuel for shipping in the Arabian Peninsula.
The deal was signed between Ministry of Oil and Gas of Oman and Total and is linked to the award of exploration licence for onshore Block 12 where there are “significant prospective” gas resources.
Total said it would use its equity gas entitlement as feedstock to develop in Oman a regional hub for LNG bunkering services.
Oman is a major anchorage and stop-over point for tankers and other vessels on trade routes between the Middle East, Asia and Europe.
Total has previously outlined plans for its LNG hub project involving a small-scale modular liquefaction plant to be built near the deepwater port of Sohar in the north on the Gulf of Oman.
Oman is planning to increase its natural gas production for domestic use and LNG exports to such an extent that the sultanate in the Arabian peninsula will see gas output levels overtaking oil by around 2025.
BP of the UK and Italian energy company Eni signed a heads of agreement with the Ministry of Oil and Gas of the Sultanate of Oman to work jointly towards a significant new exploration opportunity in the Arabian Peninsula nation where BP’s onshore Khazzan natural gas discovery revitalized LNG production.
BP said that under the accord, the two companies would work with Oman towards the award of a new exploration and production sharing agreement (EPSA) for Block 77 in central Oman.
BP and Eni will now enter discussions with the Ministry to finalise details.
“This would represent a further deepening of BP’s important position in Oman, building on our successful delivery of the major Khazzan project in 2017 and its second phase of development that is currently under construction,” said Bernard Looney, BP chief executive of the upstream division in reference to additional output achieved by Oman LNG from having sufficient domestic gas supplies.
“We look forward to continuing to explore and efficiently develop the country’s resources, working in close partnership with Eni and Oman to underpin our commitment to delivering long-term gas production for Oman,” he added.
The country’s three existing liquefaction Trains at the facilities near the town of Sur have been at full capacity since 2017 after previously suffering from a lack of feed-gas as supplies were diverted to fill domestic gas shortages.
The Omani government allocates Oman LNG supplies from various gas fields and the Khazzan field production has ended all feed-gas concerns for the near future.
The three Omani LNG processing Trains currently produce around 10.4 million tonnes per annum and supply nations such as Japan, South Korea, India and Kuwait.
Block 77, with a total area of almost 3,100 square kilometre, is located in central Oman, 30km east of the BP-operated Block 61, which contains the already-producing Khazzan gas project as well as the Ghazeer project currently under development.
The Khazzan natural gas field began production in 2017, under budget and ahead of schedule. Khazzan now produces around 1 billion cubic feet of gas a day.
The Ghazeer field is expected to add a further 0.5 bcf/d of production and is expected to come on stream in 2021.
BP has had an upstream presence in Oman since 2007 when it signed an exploration and production sharing agreement for Block 61.
Gas sales agreements and approval for the development of the Khazzan project on Block 61 were signed in 2013. In 2016, the EPSA for Block 61 was amended, adding a further 1,000 square kilometres and allowing a second phase of development.
BP of the UK said it had approved the development with Oman Oil Company of the Ghazeer project in the Sultanate of Oman as the second phase of the giant Khazzan natural gas venture in the Arabian Peninsula nation that has helped revive LNG production.
The Sultanate of Oman, whose LNG liquefaction plant exports cargoes from the port of Sur on the Arabian Peninsula, has signed a sales and purchase agreement with BP to supply shipments to the UK company's Singapore-based trading unit.
Jacobs Engineering Group of the US was selected by BP to provide engineering, procurement and construction management (EPCM) services for Phase 2 of the Khazzan Gas Project in the Sultanate of Oman that has already helped the nation on the Arabian Peninsula to revitalize its LNG exports.
UK major BP doubled its third-quarter net income and also started up three major upstream natural gas projects that will help boost LNG output in three countries, Australia, Trinidad and Oman.
Oman LNG said it was upgrading its plant at Sur on the Arabian Peninsula to be able to process more feed-gas under a contract awarded to US energy engineering company KBR Inc.
BP of the UK has started production at the giant Khazzan tight gas field in the Sultanate of Oman, a long-term LNG producer in the Arabian Peninsula and supplier of cargoes to Japan, South Korea and recently the spot market.
The Sultanate of Oman in the Arabian Peninsula, a producer of LNG supplying Japan and South Korea, has opened four onshore blocks to tender, three with oil and natural gas discoveries in place and with bidding open from September 20 until the end of December 2017.