The price comprises $2.45 billion payable on completion and $140 million payable contingent on pre-agreed future conditions.
The deal is expected to complete during 2021.
BP CEO 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
- Since 2019, PTTEP has invested in key assets in Oman including PDO (Block 6), the largest onshore oil field in Oman, and Oman LNG, the only LNG gas liquefaction complex in the country
- The investment 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
- This successful acquisition will further strengthen PTTEP’s foothold in Oman in the long run and pave the way for future investments in the Middle East
Other stakeholders are Omani national oil company OQ (30%) and Malaysia's Petronas (10%).
Located in central Oman, the gas field spans around 3 950 sq. km and produces 1.5 billion cubic feet of gas per day.
The output capacity is equivalent to about 35% of Oman's total production and there are plans to boost gas production from the field.