BP sells its 20% stake in Oman gas field to Thailand’s PTTEP

BP sells its 20% stake in Oman gas field to Thailand’s PTTEP
Leading British oil company- BP is reportedly selling 20% of its 60% share in a gas block in Oman to Thailand’s PTT Exploration and Production Public Company Limited (PTTEP) for USD 2.6 billion in a bid to gain USD 25 billion as divestment proceeds by 2025.

In a statement by BP, post the completion of the sale in Oman’s Block 61 to Thailand’s national oil company, projected to be completed this year, BP will continue to remain the operator of the block with a stake of 40%. Notably, the sale has to be approved by the Sultanate of Oman and their other partners in the block.

Bernard Looney, Chief Executive Officer, BP was reportedly quoted stating that the company is committed to its business in Oman, where the agreement allows the British oil giant to facilitate world-class development along with making notable progress in the divestment program.

It is worth mentioning that, BP aims at boosting its investment in low-carbon energy by ten times to USD 5 billion annually and reduce the oil and gas production by 40% by 2030. The company is also targeting proceeds of a total of USD 25 billion from divestments in the next five years.

As per recent news, BP announced the completion of the sale of its petrochemicals arm for USD 5 billion to INEOS in 2020.

Seemingly, the company is working towards changing its business to an integrated energy giant from an international oil company as it continues to develop resilient and focused hydrocarbon as it claimed in October 2020 after commencing the production from the Ghazeer gas field in Oman.

Apparently, owing to the prevailing coronavirus pandemic, the oil industry has been adversely affected, with BP recording losses of approximately USD 5.7 billion in 2020.

Citing sources, despite the weak business environment, the company is focusing on making a transition to a greener business model by ramping up the renewable power generation capacity to 50 GW by 2030 from the present 3.3 GW while reducing the output of the oil to reduce the GHG emissions.