Oman, BP to agree on gas price

The Pak Banker - - 6BUSINESS -

Oman and BP are op­ti­mistic about putting a seal to an agree­ment on gas price that the Bri­tish oil giants can sell from the Khaz­zan-Makarem tight gas project at Block 61.

Oman’s Oil and Gas Min­is­ter Mo­ham­mad Bin Ha­mad Al Rumhi told me­dia on Sun­day that the two par­ties could agree on pric­ing in weeks. “I am con­fi­dent that we will reach an agree­ment in the coming weeks for this project to go for­ward,” he said in re­ply to a ques­tion on the project.

BP has been con­tin­u­ing ap­praisal test­ing drilling while the ne­go­ti­a­tions are on to de­cide on the cost of the project and sell­ing price of gas.

“We are in the mid­dle of ne­go­ti­a­tions, we are mak­ing progress, This will be a good project for us and the government,” Daniel Nlan­chard. Gen­eral Man­ager BP Oman, told a few re­porters on the side­lines of the me­dia brief­ing held at the Oil and Gas Min­istry on Sun­day. He added that th­ese kinds of ne­go­ti­a­tions do take time to get a right deal for both the par­ties.

When asked if t here was a sub­stan­tial gap on pric­ing be­tween the government and BP, he smiled and said: “I would only say there’s a gap.”

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