Thailand’s PTTEP has signed an agreement to acquire a 20% stake in Oman’s Block 61 from bp for a total amount of $2.6bn.
Covering around 3,950km2, Block 61 contains the largest tight gas development in the Middle East.
The block has already witnessed two phases of development that include Khazzan and Ghazeer, which came online in 2017 and October 2020, respectively.
Khazzan and Ghazeer development have a combined daily production capacity of 1.5 billion cubic feet of gas and more than 65,000 barrels of condensate.
The two developments are aimed at developing a total of 10.5 trillion cubic feet of gas resources.
Gas produced by them is exported for domestic consumption into Oman’s national gas grid.
Following the completion of the stake sale, bp will continue to remain as the operator of Block 61, with a stake of 40%. OQ and Petronas will be other partners in the block, with 30% and 10% stakes, respectively.
The transaction is expected to be closed in 2021, after securing approval from the Sultanate of Oman and partners.
The sale of is part of bp’s divestment of $25bn by 2025.
bp chief executive officer Bernard Looney said: “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 maximise efficiency and minimise emissions.
“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 programme.”
Following the signing of production sharing agreement (PSA) for Block 61, bp has had an upstream presence in Oman since 2007.