Oman LNG, BP Sign Seven-Year Deal

Oman LNG has signed a sales and purchase agreement with BP for supply of LNG for a period of seven years, state-owned Oman News Agency (ONA) reported January 20.

The seven-year agreement, a free on-board contract, starts January 2018 for supply of 1.1mn mt/yr of LNG, equivalent to approximately 18 LNG cargoes/yr, to BP Singapore, ONA reported.

“This new agreement will not only unlock additional reserves but will also sustain our LNG business and expand our LNG business. Oman will continue to be a global preferred destination for sourcing clean energy,” said Mohammed bin Hamad al-Rumhy, minister of oil and gas, chairman of Oman LNG.

“BP is pleased to expand its longstanding relationship with Oman LNG through the conclusion of this LNG sale and purchase agreement. Following the commencement of production from the Khazzan gas field, this development deepens BP’s commitment to Oman and strengthens our support for the Sultanate’s gas sector,” Alan Haywood, CEO of BP Integrated Supply and Trading said.

Oman LNG operates as a joint venture with a shareholding structure comprising the Government of Oman (51%), Shell Gas (30%), Total (5.54%), Korea LNG (5%), Mitsubishi Corporation (2.77%) and Mitsui & Co. (2.77%) both of Japan, Portugal's Partex (Oman) Corporation (2%), and Japan's Itochu (0.92%).