Petronas subsidiary PCOVL acquires 10% stake in Oman gas field

Petronas subsidiary PC Oman Ventures (PCOVL) has closed the acquisition of a 10% interest in Block 61 of the Al Khazzan onshore gas field from Oman Oil Co Exploration & Production (OOCEP).

The stake was purchased from OOCEP subsidiary Makarim Gas Development.

PCOVL reached an agreement last October for the acquisition after a bidding exercise conducted by state-owned Oman Oil Company through its exploration unit OOCEP.

In a statement, Petronas said: “The acquisition of Block 61 marks an important step in realising Petronas’ growth strategy in the upstream sector in the region and globally, as it aligns its activities to ensure sustainable energy supply.”

With the acquisition, PCOVL now owns a 10% stake in the block, which is operated by BP Exploration (Epsilon) with a 60% interest. Makarim Gas Development holds the remaining 30% interest.

The Khazzan field commenced production in September 2017. Last year, the field was producing around one billion cubic feet of gas per day (Bcf/d) and around 35,000 barrels per day (b/d) of condensate.

Last April, BP and OOCEP approved the development of Ghazeer, the second phase of the Khazzan field.

Once the development of the second phase is completed in 2021, production from the field will increase to 1.5Bcf/d.

According to BP, the phases will collectively develop an estimated 10.5Tcf of recoverable gas resources.

Established in 1974, Petronas explores, develops and produces crude oil and natural gas in Malaysia and overseas.

The company has interests in unconventional resources projects, including the LNG Canada project in British Columbia, a coal bed methane project in Australia, and a shale gas project in Argentina.