PC Oman Ventures will buy 10% stake in Block 61 of the Al Khazzan gas field. Credit: Zbynek Burival on Unsplash.

Petronas subsidiary PC Oman Ventures has reportedly reached an agreement to acquire a 10% stake in the Al Khazzan gas field in Oman.

The agreement comes after a bidding exercise held by state-owned Oman Oil Company through its exploration division Oman Oil Company Exploration and Production (OOCEP), Reuters reported.

Under the terms of the agreement, PC Oman Ventures will buy the stake in Block 61 of the field, which is estimated to have 1.5 billion cubic feet of natural gas production a day by 2020.

Petronas was quoted by the news agency as saying: “Completion of the transaction is subject to closing conditions. Further information will be made available, as and when appropriate.”

“Completion of the transaction is subject to closing conditions. Further information will be made available, as and when appropriate.”

Meanwhile, OOCEP posted a statement on Twitter, stating that the transaction is subject to receipt of approval from the Sultanate of Oman’s Government and other closing conditions.

Wood Mackenzie Middle East oil and gas analyst Liam Yates reportedly told rigzone.com that the sale will earn more than $1.3bn to OOCEP.

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Block 61 is held in a joint venture between BP and OOCEP. The British oil and gas major owns a 60% interest in the block, while the remaining 40% is held by OOCEP.

In April, the JV partners made a final investment decision (FID) on the development of Ghazeer, the second phase of the Khazzan gas field.

Khazzan’s first phase of development started up in September last year and is currently producing around one billion cubic feet of gas a day (bcf/d) and 35,000 barrels a day of condensate.

Expected to commence production in 2021, Ghazeer is set to increase production by 0.5bcf/d and more than 15,000bpd condensate.