Oman Oil to Sell 10% Stake in Khazzan Gas Field

Oman Oil to Sell 10% Stake in Khazzan Gas Field

State-run Oman Oil plans to sell a 10% stake in the Khazzan natural gas field amid a restructuring of the company’s business model, Bloomberg reported.

Oman Oil currently holds a 40% stake in the field, and British oil major BP owns the remaining 60%. The field is estimated to be worth more than $1 billion.

Chinese, Middle Eastern, and Indian companies are reportedly interested in the asset, and Oman Oil expects to receive bids by July.

However, Oman Oil may still choose to retain the stake as it weighs up its options.

The company recruited the services of investment bank Lazard Ltd. to assist in revitalising its operations as the country looks to reduce its dependence on hydrocarbons.

Oman Oil is considering a potential initial public offering for its exploration business, as well as selling some assets.

BP and Oman Oil agreed on terms for the second ‘Ghazeer’ phase of the Khazzan project in April. Ghazeer is scheduled to be operational in 2021 and produce an additional 500 million cubic feet of gas per day (cf/d) on top of the 1 billion cf/d already being produced. An additional 15,000 b/d of condensate is also expected.

The total concession of both the Khazzan and Ghazeer developments are expected to produce 10.5 trillion cf of gas and roughly 350 million barrels of condensate per day, according to a BP press release.

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