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BP to sell a stake in Oman’s block 61
BP is to sell a 20% participating interest in Oman’s block 61 to PTTEP of Thailand for a total consideration of $2.6bn. Following completion of the sale, BP will remain operator of the block, holding a 40% stake. The remaining interest will be held by OQ (30%) and Petronas (10%).
Block 61, covering around 3,950sq km in central Oman, contains the largest tight gas development in the Middle East. It 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 10.5tn cf of gas resources, have a combined daily production capacity of 1.5bn cf of gas and more than 65,000 barrels of condensate. Gas from block 61 is exported into Oman’s national gas grid for domestic consumption, while also boosting availability of feedstock supply for Oman LNG.
BP is targeting divestment proceeds of $25bn by 2025. Most recently, it sold its petrochemicals business to Ineos for $5bn at the end of 2020.
