Commodities

China’s CNPC in Talks to Acquire 10% Ownership in BP’s Oman Field

China’s CNPC in Talks to Acquire 10% Ownership in BP’s Oman Field

Asian oil giant, China National Petroleum Corporation, is eyeing to acquire a 10% ownership in BP’s primary gas field in Oman.  

Some persons familiar with the matter said that the deal is private, but China state-owned CNPC is in talks with British Petroleum for a 10% share in an Oman gas field. Although any spokesperson from any firm refused to say anything but the final decision is not made yet. Some other parties have also shown interest in the deal, which might be worth more than $1.5B.

A leading news website, posted early in June that BP is eyeing to sell its 10% stake from its Oman gas field. Besides the UK oil giant, which owns 60% share in the Khazzan field, a 30% stake is in the hands of Oman Oil Company and 10% in Malaysia’s oil firm, which Oman Oil Company sold them in 2018.

On Thursday, BP’s share price also fell by about 3.6%, in response to falling in the Brent Crude oil’s futures. The growth chart of world oil demand is flattering amid the increase in virus cases.

In the meantime, China is trying to establish its global presence in the trading world under its B&R initiative. Apart from BP’s Oman gas field, China State Grid Corporation has also admitted to acquiring a 49% share in Oman power transmission organization. Furthermore, China has a 50% interest in oil Block five, and CNPC also paid more than $1.2B for oil and gas acquisitions in 2018, in Abu Dhabi.

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