Share Name Share Symbol Market Type Share ISIN Share Description
British Petroleum LSE:BP. London Ordinary Share GB0007980591 $0.25
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +4.20p +0.82% 516.30p 516.30p 516.50p 517.40p 513.30p 513.30p 763,025 08:08:13
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Oil & Gas Producers 181,084.0 5,315.9 12.7 39.0 103,043.16

Malaysia's Petronas Set to Buy 10% Stake in Giant Oman Gas Field

18/10/2018 8:20pm

Dow Jones News


BP (LSE:BP.)
Historical Stock Chart

1 Month : From Oct 2018 to Nov 2018

Click Here for more BP Charts.
By Ben Dummett and Sarah Kent 

Malaysia's state oil company has agreed to acquire about a 10% stake in the giant Khazzan natural gas field in Oman, according to people familiar with the matter.

The planned purchase, which could be announced in the coming days, gives Petronas -- also known as Petroliam Nasional Bhd -- a toehold in one of the biggest fracking projects ever completed outside the U.S., a $12 billion development run by BP PLC that launched last year. BP's partner in the project, Oman Oil Company, had been looking to sell a portion of its 40% stake in the gas field. After Petronas's acquisition, the company will retain about a 30% stake, while BP will retain its 60% interest.

The sale comes as many of the Middle East's state oil companies look for ways to cash in and diversify their huge oil wealth. While Saudi Arabia has pulled back from an initial public offering of its state oil company, other big players in the region have continued to pursue deals that could help them unlock value from their assets.

Last year, Abu Dhabi's national oil company floated its retail division, while earlier this month it sold a 5% stake in its drilling unit to Baker Hughes.

Big oil companies are also increasingly betting on natural gas, anticipating strong demand growth in the coming years. Major producers like Qatar have significant plans to increase exports of liquefied natural gas, targeting fast-growing economies in Asia. Oman is the among the region's largest exporters of LNG after Qatar.

Oman's heavy reliance on oil production hit home after prices crashed in 2014. The country was part of the consortium of oil producers that together with the Organization of the Petroleum Exporting Countries sought to roll back production and prop up prices. Its lower oil production caused the country's economy to contract last year, despite modest growth in its non-hydrocarbon economy, according to a July 2018 report by the International Monetary Fund.

"Oman has posted double-digit-fiscal and current account deficits over the past few years...[and] against that backdrop, the authorities have launched reforms to bolster the fiscal position and boost private sector-led growth and diversification," the IMF said in its report.

For Petronas, this marks its second gas deal this month. The company is among a consortium planning to develop a giant LNG project in Canada announced earlier in October.

The Khazzan gas field is currently producing 1 billion cubic feet of gas a day, with work underway to add another 500 million cubic feet a day by 2021.

Write to Ben Dummett at ben.dummett@wsj.com and Sarah Kent at sarah.kent@wsj.com

 

(END) Dow Jones Newswires

October 18, 2018 15:05 ET (19:05 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.

1 Year BP Chart

1 Year BP Chart

1 Month BP Chart

1 Month BP Chart
Your Recent History
LSE
GKP
Gulf Keyst..
LSE
QPP
Quindell
FTSE
UKX
FTSE 100
LSE
IOF
Iofina
FX
GBPUSD
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P:43 V:gb D:20181115 08:23:14