Petronas buys 10% stake in Oman oil block

UOB Kay Hian Research analyst Kong Ho Meng said while there have not been any large tenders awarded by Petroliam Nasional Bhd (Petronas), it expected contracts to be rolled out from next year. In Malaysia, he said, about 11% or about 35 of the over 300 platforms have been operating for over 40 years, and more than 200 wells have already been identified to be plugged and abandoned.

KUALA LUMPUR: Petroliam Nasional Bhd’s (Petronas) subsidiary bought a 10% stake in Block 61, onshore Oman, marking an important step in its strategy in the upstream sector.

The national oil company said on Saturday the stake was acquired by its subsidiary, PC Oman Ventures Ltd (PCOVL), from Makarim Gas Development LLC (MGD) after the conditions for the completion of the transaction were fulfilled.   

MGD is a subsidiary of Oman Oil Company Exploration & Production LLC 
 
Petronas said the completion of the transaction was formalised at an event held in Muscat, Oman on Dec 27. The terms of the transaction or value were not disclosed.

PCOVL holds a 10% stake, MGD 30% stake and BP Exploration (Epsilon) Limited as the operator 60% stake.   
 
“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.