Dentons advises OOCEP on sale of 10% stake in Khazzan gas project
Dentons, a leading global law firm, has advised Oman Oil Company Exploration & Production (OOCEP) on the sale of a ten per cent stake in the giant Khazzan gas field and project to Malaysia's Petronas.
The Petronas unit, PC Oman Ventures Ltd, has acquired the stake in the Block 61 contract area, which is expected to produce around 1.5bn cubic feet of natural gas per day by 2020, Dentons said in a statement on its website.
In October last year, OOCEP had agreed to sell a ten per cent stake from the total value of Block 61 Khazzan gas field to PC Oman Ventures Limited, a wholly owned subsidiary of Malaysian company Petroliam Nasional Berhad (Petronas).
Makarim Gas Development LLC, OOCEP's subsidiary in the exploration and production sharing agreement, continues to hold a 30 per cent stake in the Khazzan gas project while BP holds remaining 60 per cent, Dentons said.
Dentons advised OOCEP on the regulatory and contractual structure of the deal, drafted the sale and purchase agreement, and assisted with all the consents, pre-emption requirements and other conditions precedent leading up to the closing at the end of December 2018.
Andy Figgins, partner in Dentons' Muscat office heading the energy, transport and infrastructure team, said, "We are delighted to have advised our long-standing client OOCEP on the sale of part of their stake in this world class unconventional gas project, welcoming high profile foreign investment into Oman's oil sector.”
Petronas is Malaysia’s fully-integrated oil and gas multinational ranked among the largest corporations on Fortune Global 500.
'The acquisition of Block 61 [stake] marks an important milestone in realizing Petronas' growth strategy in the upstream sector in the region and globally, as it aligns its activities to ensure sustainable energy supply,' Petronas said on its Twitter handle last week.