Oman Oil to sell 10% stake in Khazzan gas field to Malaysia’s Petronas
Oman Oil Company Exploration and Production (OOCEP), a subsidiary of Oman Oil Company, has 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).
The completion of the transaction is subject to approval from the sultanate’s government and other closing conditions, OOCEP said in a press statement. Petronas is Malaysia’s fully-integrated oil and gas multinational ranked among the largest corporations on Fortune Global 500.
OOCEP, through its subsidiary Makarim Gas Development, currently holds a 40 per cent stake in Block 61, whereas the operator BP Oman holds the remaining 60 per cent.
Block 61, which includes Khazzan and Ghazeer gas fields, is one of the largest unconventional gas projects, that aims to produce around 1.5bn cubic feet of gas daily by 2020.
OOCEP is currently focusing on upstream investments locally as well as internationally and building partnerships to optimise operations and foster opportunities. The company currently operates Block 60, and Block 48 and is active in a number of key joint ventures such as the Khazzan gas field, which is operated by BP, the Mukhaizana field and Block 9 both of which are operated by Oxy, and Block 52 which is Operated by Eni.
The work at the second phase of the Khazzan gas field project in Block 61 is progressing well and around 33 per cent of the second phase, also known as Ghazeer, has been completed, Yousef bin Mohammed al Ojaili, president of BP Oman last week said in a statement. He said, “As per the agreement between Oman’s government and BP, the production from first phase of Khazzan gas project now stands at about 28mn cubic meters of gas per day and 30,000 barrels per day of oil condensates.”