BP to sell 20% stake in Oman gas field to Thailand’s PTTEP for $2.6bn

BP has agreed to sell a 20% stake in a gas field in Oman to Thailand’s national oil company, PTT Exploration and Production (PTTEP), for $2.6bn.

The oil giant said on Monday that following completion of the sale of Block 61, it will remain the operator, holding a 40% interest.

The deal is expected to complete this year, subject to approval from the Sultanate of Oman and partners.

Block 61, covering around 3,950km2 in central Oman, contains the largest tight gas development in the Middle East. It has already had two phases of development - Khazzan, which began production in 2017, followed by Ghazeer in October 2020.

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."