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BP sells partial stake in Oman’s Block 61 to PTTEP

BP has agreed to sell a 20% participating interest in Oman’s Block 61 to PTT Exploration and ‎‎Production Public Company Limited (PTTEP) of Thailand for a total consideration of $2.6 billion. ‎Following completion of ‎the sale, BP will remain operator of the block, holding a 40% interest.‎

BP will remain the operator of Block 61 (pictured) following a sale of a 20% ownership interest to PTTEP. (BP)

‎Subject to approval from the Sultanate of Oman and partners, the deal is expected to complete during ‎‎2021. The agreed total consideration of $2.590 billion comprises $2.450 billion payable on completion ‎‎(subject to final adjustments) and $140 million payable contingent on pre-agreed future conditions.‎

Following completion, participating interests in Block 61 will be: BP, 40%; OQ, 30%; PTTEP, ‎‎20%; and ‎Petronas, 10%.‎

Block 61, covering around 3,950km2 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 Tcf of gas ‎resources, have a combined daily production capacity of 1.5 Bcf of gas and more ‎than 65,000 barrels 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.‎

“We are pleased to welcome PTTEP to the ‎successful Block 61 partnership. Block 61 is a pioneering development that has applied ‎leading techniques and technologies to maximize efficiency and minimize emissions,” BP CEO Bernard Looney said. “We are committed to BP’s business in Oman – this agreement allows us to remain at the ‎heart of this world-class development while also making important progress in our global ‎divestment program.”‎

BP is targeting divestment proceeds of $25 billion by 2025. Most recently, the $5 billion sale of ‎its petrochemicals business to INEOS completed at the end of 2020.‎

“We look forward to working closely ‎with PTTEP, our other partners, and the Government of Oman on the continued success of ‎Khazzan and Ghazeer, and to explore further opportunities in Block 61,” said BP Oman VP Yousuf Al Ojaili. ‎“We remain very much committed to our strategic partnership with Oman. We will continue ‎to support critical national energy infrastructure for the Sultanate through Block 61, invest ‎significantly in local companies and Omani talent, and deliver an ambitious social investment ‎program.”‎

 

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