BP sells stake in giant Omani gas project for $2.6bn
BP has this morning sold a 20 per cent stake in a giant gas field in central Oman to Thailand’s national oil company for $2.6bn (£1.9bn).
The oil giant will remain the operator of Block 61, the largest “tight gas” development in the Middle East, with a 40 per cent stake.
It said that it expected the deal, part of its $25bn divestment plan, would complete in 2021.
The sale comes a day before BP is due to release its fourth quarter results after a brutal year for the oil industry.
However, analysts at Jefferies said that the sale seemed to be “at variance” with BP’s strategy “of divesting non-core positions and focusing the upstream business on resilient, low cost / low emissions hydrocarbons”.
They also said the stake was sold for less than Jefferies’ in-house valuation of $2.8bn.
Shares in the firm dropped 0.7 per cent as markets opened.
BP chief executive officer Bernard Looney said: “We are pleased to welcome PTT Exploration and Production Public Company 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.”
The two developments at Block 61 have a combined daily production capacity of 1.5bn cubic feet of gas and more than 65,000 barrels of condensate.
BP has been exploring the site since 2007, with the first gas produced a decade later.
PTTEP will join Petronas and Omani oil company OQ as a minor stakeholder in the project.