OOC seeks to raise $2bn to develop major projects

MUSCAT, JUNE 3 – State-owned energy investment firm Oman Oil Company’s offer of a 10 per cent stake in the giant Khazzan gas field in central Oman is sparking strong international interest. Sources close to Oman Oil Company (OOC) say that the company has offered 10 per cent of its stake in the Khazzan gas field for sale, as part of its portfolio optimisation strategy — a move that could potentially raise between $1.5 to $2 billion to be reinvested in local and international opportunities.

The sources say that a divestment process was launched and the company has so far received a number of initial offers. Among the players in this process are a number of major companies from Japan, China, India and the Middle East. The sources add that the process will remain open for the next few months to evaluate the bids offered up to the selection of the final buyer, which is expected to be completed by the end of 2018. OOC has a 40 per cent participating interest in the Khazzan field while BP is the operator with a 60 per cent interest. Khazzan’s development started in 2013 and achieved first gas production of 1bcf/d in the last quarter of 2017.

Hamood al Mahrazi