(Reuters) Petrofac, the international oil and gas services provider, has been awarded a contract by BP, worth $1.2 billion, for the Khazzan gas project in Oman. The scope of work will include engineering, procurement and construction of the central processing facility (CPF) at the Khazzan field.  The CPF will include two process trains, each having a capacity of 525 million standard cubic feet of gas per day, Petrofac said in a statement.

The project also includes an associated condensate processing system, power generation plant, water treatment system and all associated utilities and infrastructure. The project is expected to be completed in 2017. The deal for the central processing facility has been awarded on a convertible lump sum basis and will convert to a full lump sum contract at a pre-determined point during execution, Petrofac added.

Subramanian Sarma, managing director of Petrofac's Onshore Engineering & Construction business, 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 this pioneering project at Khazzan, the largest new upstream project in Oman.

"We have a very strong record for project execution in Oman with this project representing Petrofac’s eighth EPC contract in the Sultanate and follows the recent award of the $2.1 billion Sohar refinery improvement project which was announced in November.”

In November, Petrofac said a joint venture with South Korea's Daelim Industrial Co had won a $2.1 billion contract for a refinery project from Oman Oil Refineries and Petroleum Industries Company (ORPIC).  The three-year contract includes engineering, procurement, construction, start-up and commissioning services at a refinery in the Sohar Industrial Area, 230 kilometres northwest of Muscat.  The deal includes improvements at the existing facility and the addition of new refining units, it said.