BP Hopes to Agree on Oman Tight Gas Deal Soon

Oman and BP are expected to reach an agreement within weeks on the price the British firm would get for gas produced from the Khazzan tight gas project, Reuters reported citing its oil minister.

"Both the government and BP have disagreements, including gas pricing, but I am confident that we will reach an agreement in the coming weeks for this project to go forward," Mohammad bin Hamad al-Rumhy said, Reuters reported.

The British energy giants has invested $700 million in the project in Khazzan in central Oman but has been haggling over the price it will get for selling the gas produced to Oman on its tightly-controlled domestic market, Reuters said. The Omani government wants the gas to be sold in the domestic market, where prices are tightly controlled.

Al-Ruhmy said on Sunday state-controlled Petroleum Development Oman (PDO) had found another 2.9 tcf of gas and 115 million barrels of gas condensate in the Mabrouk Deep field in exploratory drilling in 2012, Reuters added citing Oman's state news agency report.