BP Sells 20% Stake In Omani Gas Field To PTTEP For $2.6Bln, Maintaining Controlling Share

(@FahadShabbir)

BP Sells 20% Stake in Omani Gas Field to PTTEP for $2.6Bln, Maintaining Controlling Share

MOSCOW (UrduPoint News / Sputnik - 01st February, 2021) UK petroleum giant BP has agreed to sell 20 percent of its stake in Oman's Block 61, its biggest upstream project in the country, to Thai national energy firm PTTEP as part of its global divestment program.

In a statement published Monday, BP said the sale is expected to be completed this year and will cost the Thai firm nearly $2.6 billion. BP will remain a majority holder of participating interest after the sale, at 40 percent, Omani state OQ will retain 30 percent, PTTEP will garner 30 percent while private Malaysian energy firm Petronas will hold on to its 10 percent stake.

The sale comes as part of BP's global divestment program which seeks to reach $25 billion by 2025 by selling off assets to slash its climate impact.

"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 maximize efficiency and minimize emissions," Bernard Looney said in the statement, adding that BP remained committed to doing business in Oman.

This way, BP relinquishes majority control of the largest tight gas development site in the middle East. It had been operational in the country since 2007.

Much of the daily produced 1.5bn cubic feet of gas goes to feed Oman's national power grid while also pumping out around 65,000 barrels of ultralight condensate oil. The gas field's volume is estimated at over 10 trillion cubic feet of gas.

BP's divestment program is part of a wider pledge by oil giants to reduce their environmental impact by releasing funds in large scale operations and redirecting them towards green projects.

The same day as the announcement was made, Greenpeace's investigative arm published a report accusing BP and other oil giants of releasing million of tonnes of carbon dioxide through venting and flaring in the North Sea, with little to no oversight by the UK government. The organization called for a change in approach to reducing environmental impact; to focus on reducing oil and gas production rather than making the production process more efficient.