PTTEP Acquires a 20% Stake in Oman’s Khazzan Gas Field
PTT Exploration & Production Public Company Ltd. (PTTEP), the upstream arm of Thai national oil company PTT Public Company Ltd., has entered into an agreement with BP Plc to acquire a 20% working interest in Block 61 in Oman for US$2.45 billion, plus certain additional contingent payments capped at US$140 million.
Upon completion, BP will hold a reduced 40% operated interest in the block, with subsidiaries of state-owned Oman Oil Company Exploration & Production LLC (OOCEP) and Malaysia’s Petroliam Nasional Bhd (PETRONAS) holding a 30% and 10% interest, respectively.
Block 61 covers an area of 3,950 sq. km in Al Dhahirah Governorate, located approximately 350 km south-west of Muscat. The license contains the Khazzan and Ghazeer gas fields, and is considered to be one of the largest gas developments in the Middle East, with a capacity to deliver approximately 35% of Oman’s total gas output. The block has gross estimated prospective resources of nearly 10.6 trillion cubic feet equivalent (Tcfe), of which approximately 83% is gas.
“The investment in Block 61 is aligned with PTTEP’s direction of growth, focusing on highly prolific areas, and supports our strategy towards gas value chain investments as gas produced from the block will boost availability of gas supply for Oman LNG,” said Phongsthorn Thavisin, CEO of PTTEP.
PTTEP is currently engaged in exploration and production activities in Thailand as well as internationally across South East Asia (Vietnam, Myanmar, Indonesia), Sub-Saharan Africa (Mozambique), the Middle East & North Africa (UAE, Algeria), the Americas (Canada, Mexico, Brazil), and Australia.
The completion of the transaction is subject to customary closing conditions, including the receipt of necessary government approvals, and is expected to close during 2021.