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FINANCIAL NEWS
BP to decide on USD15b Omani tight gas deal
23 Jun 2011
(MENAFN) Bob Dudley, BP CEO, said that BP would decide by spring of next year whether to enter a USD15 billion deal to grow BP’s tight gas wells in Oman from 3 to 300, Reuters reported.
The deal hinges on whether UK-based BP and the government of Oman, which controls domestic oil prices, can agree on a high enough price for the gas. The tight gas is difficult and costly to extract, Dudley said.
The project would cost about USD15 billion over a decade, Mohammed bin Hamed Al-Rumhy, Oman’s Minister of Oil and Gas and Petroleum Development of Oman CEO, said.
BP and Oman signed a deal in 2007 to exploit the gas, and BP plans to start tests from three wells by the end of this summer, Nasser Al-Jashmi, the undersecretary of the Oman oil and gas ministry, said last month.
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