Oman Oil weighs up selling Khazzan stake

The shareholding potentially available for sale could be worth around $1bn.

Photo for illustrative purposes only.
Photo for illustrative purposes only.

The Oman Oil Company is contemplating selling a 10% stake in the major Khazzan gas field in the sultanate as part of a review of the state-owned firm’s options for restructuring its business, according to Bloomberg.

The available stake in the field, in which supermajor BP has a controlling 60% share, is thought to be worth at least $1bn, according to un-named sources cited by the news agency. It is thought Chinese, Middle Eastern and Indian firms have shown interest, and Oman Oil, which owns the remaining 40% of the field, is hoping to receive bids by July.

No final decisions have been made and there is no guarantee any sale will eventually materialise. Nobody from Oman Oil was available for comment.

Oman Oil is examining a range of options to realign its business including a possible initial public offering for its exploration business as well as selling off assets, according to Bloomberg’s sources.

BP and Oman Oil moved forwards on the second phase, Ghazeer, of the onshore Khazzan project just a couple of months ago. The field is expected to start production in 2021.

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