bp sells 20% stake in Omani gas project for $2.6bn The move is part of a $25 billion divestment programme by 2025
Image: bp
bp has agreed to sell a 20% share in a gas project in Oman for $2.6 billion (£1.9bn).
The oil and gas giant is selling a third of its stake of the Block 61 project to PTT Exploration and Production Public Company Limited (PTTEP), the national petroleum corporation in Thailand.
Block 61 site, which covers 3,950 square kilometres in central Oman, contains what is claimed to be the largest tight gas development in the Middle East.
Tight gas is natural gas produced from reservoir rocks that need massive hydraulic fracturing to produce the well at economic rates.
By: ONA
Muscat: BP has agreed to sell a 20 per cent 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 per cent interest. 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 per cent; OQ, 30 per cent; PTTEP, 20 per cent; and PETRONAS, 10 per cent.
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Oman: BP to sell 20% stake in Oman s Block 61 to PTTEP
01 Feb 2021
bp will remain operator of Block 61, with 40% interest
Agreement marks another significant step in bp’s divestment programme
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.
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.