KCA Deutag has secured over $400m contracts to construct and operate five new build land rigs for the project.

Oman’s Abraj Energy Service has won over $330m contracts to deliver three drilling rigs for the full field development of the project.

BP Oman general manager Dave Campbell said: "We are pleased to announce these contracts which continue to progress our development of the gas resources at Block 61.

"Abraj Energy Service and KCA Deutag will play important roles in the massive drilling programme ahead. The selection of Abraj Energy Services demonstrates once again BP’s commitment to In Country Value."

The Khazzan project, which was approved in December 2013, represents the initial phase in the development of one of the largest unconventional tight gas plays in the Middle East region.

BP said the project has the potential to be a major new source of gas supply for Oman for several years.

The full field development of the project will feature a drilling programme of about 300 wells over 15 years to deliver plateau production of one billion cubic feet of gas per day.

Construction work has started on the project and first gas is expected in late 2017.

Apart from the latest deals, BP has awarded various contracts worth about $90m to local Omani firms for civil works, including well pads and in-field roads.

The company has recently awarded $16m contracts to various Omani companies to supply carbon steel pipes and to manufacture, deliver and install a water pipeline.

BP operates Block 61 with a 60% stake and the Oman Oil Company for Exploration and Production holds the remaining interest.