Malaysia’s national oil company, Petronas has completed the acquisition of a 10 per cent interest in Block 61 of the Al Khazzan onshore gas field through its subsidiary PC Oman Ventures (PCOVL).
The stake was purchased from Oman Oil Co Exploration & Production (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.
“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,” Petronas said in a statement.
With the acquisition, PCOVL now owns a 10 per cent stake in the block, which is operated by BP Exploration (Epsilon) with a 60 per cent interest. Makarim Gas Development holds the remaining 30 per cent interest.
The Khazzan field began 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 is expected to increase to 1.5Bcf/d.