BP Strikes $2.6bn Sale at Omani Block
BP has agreed to sell a 20% stake in Oman's onshore Block 61 to Thailand's PTTEP in a deal worth $2.6bn, the UK major reported on February 1.
Block 61 contains the Khazzan tight gas field, which came on stream in late 2017 and now produces gas at a rate of 1.5bn ft3/day, following the launch of its second phase last October. BP will remain operator of the project with a 40% position. The remaining interest is divided between Oman's state-owned OQ with 30% and Malaysia's Petronas with 10%.
The deal is due to be closed this year, pending approval from Omani authorities. BP will receive $2.45bn on its completion plus $140mn when certain future conditions are met, the company said, without divulging details.
BP is looking to shed $25bn of assets by 2025, as it looks to stem losses and reduce its debt, while also scaling back its oil and gas activities in favour of renewables. It closed the $5bn sale of its petrochemicals business to the UK's Ineos at the end of last year. The company was reported to be in the early stage of negotiating a partial divestment at Block 61 by Bloomberg in June last year.
In a statement, CEO Bernard Looney said the company remained committed to Oman, despite the sale.
"This agreement allows us to remain at the heart of this world-class development while also making important progress in our global divestment programme," he said.
BP is also partnered with Italy's Eni at Oman's Block 77, and its trading division buys LNG from Oman LNG under a seven-year deal that began in 2018.