Singapore — Malaysia’s state-run oil and gas company Petronas has completed the acquisition of a 10% stake in a gas field in onshore Oman from Oman Oil Co Exploration & Production or OOCEP.
The acquisition was made by Petronas’ subsidiary PC Oman Ventures Ltd or PCOVL in Block 61 from Makarim Gas Development, a subsidiary of OOCEP, after the conditions for the completion of the transaction were fulfilled, Petronas said in a statement over the weekend.
PCOVL now holds a 10% stake in the block, Makarim Gas Development holds a 30% stake and BP Exploration (Epsilon) Ltd is the operator of the block with a 60% stake, Petronas said.
“The acquisition of Block 61 marks an important step in realizing Petronas’ growth strategy in the upstream sector in the region and globally, as it aligns its activities to ensure sustainable energy supply,” it added.
The Khazzan field in Block 61 is one of the Middle East’s largest unconventional gas resources and started production in late September 2017, according to BP’s website. In Phase One of development, the Khazzan field was already producing at design capacity of around 1 Bcf/d and around 35,000 b/d of condensate in 2018.
In April 2018, BP announced the development of Ghazeer, the second phase of the giant Khazzan gas field in Oman, expected to come on stream in 2021 and deliver an additional 0.5 Bcf/d and over 15,000 b/d condensate production.
The two phases are expected to develop an estimated 10.5 Tcf of recoverable gas resources and around 350 million barrels of condensate through the end of concession period in the Khazzan field, according to BP.
