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.