BP sells stake in Oman gas block to PTTEP for $2.6 billion

UK-based energy firm BP has sold a 20 percent stake in a giant gas block in Oman to Thailand’s PTTEP for $2.6 billion.

Following completion of ‎the sale during this year, BP will remain operator of Block 61, holding a 40 percent interest. OQ has a 30 percent stake in the field while Petronas owns a 10 percent stake.

In addition, the agreed total consideration of $2.59 billion comprises $2.45 billion payable on completion ‎and $140 million payable contingent on pre-agreed future conditions, BP said in a statement.

Block 61, covering around 3,950 square kilometers in central Oman, contains the largest tight gas ‎development in the Middle East.

The block has already had two phases of development – ‎Khazzan, which began production in 2017, followed by Ghazeer in October 2020.

These two developments, targeted at developing a total of 10.5 trillion cubic feet of gas ‎resources, have a combined daily production capacity of 1.5 billion cubic feet of gas and more ‎than 65,000 barrels of condensate.

Gas from Block 61 goes for domestic consumption ‎into Oman’s national gas grid, while also boosting availability of feedstock supply for Oman ‎LNG, according to BP.

BP’s shipping unit buys chilled fuel from Oman LNG under a seven-‎year deal that started in 2018.‎

State-owned Oman LNG operates three trains with a total capacity of 10.4 million tonnes per year at Qalhat, near Sur.

Most Popular

Venture Global, Petronas seal 20-year LNG SPA

US LNG exporter Venture Global LNG has signed a 20-year LNG supply contract with Malaysian energy giant Petronas for volumes from the CP2 project in Louisiana.

Golden Pass LNG seeks re-export approval

Golden Pass LNG, a joint venture owned by energy giants QatarEnergy and ExxonMobil, is seeking approval from the US DOE to export previously imported LNG from October, as it nears the launch of the first liquefaction train.

TPDC, Energetech Tantel to develop Tanzanian small-scale LNG plant

State-run Tanzania Petroleum Development Corporation has signed a memorandum of understanding with Energetech Tantel to develop what they say is Tanzania's first small-scale LNG plant.

More News Like This

Argentina’s Enarsa to spend $567 million on LNG purchases

Argentina's state-owned LNG importer, Energia Argentina (Enarsa), will spend $570 million to purchase 22 liquefied natural gas (LNG) cargoes from BP and TotalEnergies this year.

BP seals LNG SPA with Italy’s A2A

UK-based energy giant BP has signed a long-term liquefied natural gas (LNG) supply deal with Italian electricity and gas distributor A2A.

Shell denies BP takeover talks

UK-based LNG giant Shell denied it was in talks to buy BP following media reports.

Oman LNG in methanation move

State-owned producer Oman LNG has signed a deal with Japan’s Kanadevia to conduct a detailed pre-FEED study for a pilot plant to produce synthetic methane.