British petroleum company BP PLC was said to have signed a 30-year agreement to develop Oman's Khazzan tight gas project with an estimated investment of $16 billion. The deal will help the Omani economy to keep growing and bolster flagging gas exports.

According to Reuters, the Khazzan gas project is a showcase for BP's tight gad extraction technology. The output will go towards meeting Oman's growing energy needs. 

BP has already spent hundreds of millions of dollars on the project since winning the concession in 2007. It expects total investment of around $16 billion for the full field development, the report said.

Reuters said that the construction is expected to begin in 2014. First gas is expected in late 2017, while a plateau production of around one billion cubic feet (1 bcf) per day is expected in 2018. Reuters said in its report that this level of production would be enough to meet around a third of Oman's current domestic gas needs. But Omani energy demand is reportedly rising at a rapid pace. The country also hopes to import Iranian gas in a separate 25-year deal signed in August, the report said.