BP, Oman May Agree on Tight Gas Sales Next Year

BP hopes to agree terms for the broader commercial development of its tight gas project in Oman in 2013, Reuters reported Monday.

The newswire further said quoting company’s chief executive that a final investment decision is likely by the end of the year.  BP has already invested $700 million in the project in Khazzan in central Oman but selling price of the gas in the domestic market is still under negotiation.

"We are very much committed to Oman," Bob Dudley told Reuters on the sidelines of a conference in Abu Dhabi. He said BP hoped to agree gas sales agreement terms sometime next year.

The Omani government has said the gas must be sold in Oman where sale prices are tightly controlled.