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    BP Seeks $1bn Sale at Oman Gas Project: Press


The UK major had big divestment plans even before the March oil price crash.

by: Joseph Murphy

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Natural Gas & LNG News, Middle East, Premium, Corporate, Mergers & Acquisitions, Exploration & Production, News By Country, Oman

BP Seeks $1bn Sale at Oman Gas Project: Press

BP is at the early stage of negotiating the sale of a 10% stake in the Khazzan gas field in Oman, Bloomberg reported on June 4 citing sources.

The stake would likely fetch more than $1bn, the sources said. BP wants to use proceeds to clear some of its debts, they said, which came to $51.4bn net at the end of March, after rising $6bn since the start of the year.

BP and its partner Oman Oil have been producing gas at Khazzan since September 2017. Its second phase, greenlit in 2018, is set to lift production from 1bn ft3 to 1.5bn ft3/day in 2021. BP has a 60% stake in the project.

The UK major embarked on a major divestment programme last year, aiming to shed $10bn of assets by the end of 2020, followed by a further $5bn by mid-2021. The company said in early February it had already raised $9.4bn from sales since the start of 2019, putting it well ahead of its targets. That month it was reported to be seeking a buyer for its stake in the In Amenas gas project in Algeria. 

The company is planning a restructuring in September as it moves towards implementing its net zero carbon commitments.