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.

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