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%).
