BP said it has awarded two drilling contracts worth $730 million for the development of its Oman’s Khazzan tight gas project, it said.

It said it has awarded work worth more than $400 million to KCA Deutag for the construction and operation of five land rigs for Khazzan and a $330 million contract to Oman’s Abraj Energy Service for the supply of three drilling rigs for the full field development.

The Khazzan project, which aims to extract around one billion cubic feet per day of gas from sandstone with low permeability at depths of up to 4,500 metres in Oman, is a showcase for BP’s tight gas extraction technology.