BP to sell interest in Oman Block 61

Feb. 1, 2021
BP PLC agreed to sell a 20% participating interest in central Oman Block 61 to Thailand’s PTT Exploration and ‎‎Production Public Co. Ltd. (PTTEP) for $2.6 billion.

BP PLC agreed to sell a 20% participating interest in central Oman Block 61 to Thailand’s PTT Exploration and ‎‎Production Public Co. Ltd. (PTTEP) for $2.6 billion.

The 3,950 sq km block, containing the largest tight gas ‎development in the Middle East, has had two phases of development; ‎Khazzan, which began production in 2017, and Ghazeer, in October 2020 (OGJ Online, Sept. 25, 2017; Oct. 12, 2020).

The developments, targeting 10.5 tcf of gas ‎resources, have combined daily production capacity of 1.5 bcf of gas and more ‎than 65,000 bbl of condensate. Gas from Block 61 is exported for domestic consumption ‎into Oman’s national gas grid, while also boosting availability of feedstock supply for Oman ‎LNG.‎

Subject to approval from the Sultanate of Oman and partners, the deal is expected to close this year. The agreed total consideration comprises $2.45 billion payable on completion ‎‎and $140 million payable contingent on pre-agreed future conditions.‎

BP will remain operator with 40% interest with partners OQ (30%), PTTEP (‎‎20%), and ‎Petronas (10%).