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BP agrees to sell 20% stake in Oman’s Block 61 for $2.6 bn

BP Oman_IFM_Image
The stakes will be sold to Thailand’s PTT Exploration and Production

Energy giant BP is planning to sell a 20 percent stake in Oman’s Block 61 for a fee of around $2.6 billion, media reports said. The stake will be sold to Thailand’s state-owned PTT Exploration and Production. The deal is part of BP’s greater plan to sell $25 billion worth of assets by 2025.

In this regard, BP’s Chief Executive Bernard Looney told the media, “We are committed to BP’s business in Oman – this agreement allows us to remain at the heart of this world-class development while also making important progress in our global divestment programme.”

Last year, BP’s stock prices crashed to a 25-year low after its chief executive Bernard Looney announced its new climate strategy. In September, Bernard Looney announced BP’s plans to turn the company from a predominant oil and gas company to an integrated energy company. He and his new management team gave more than 10 hours of presentations over three days last week, in a bid to show the world that the oil and gas giant could adapt to a low-carbon future without sacrificing returns.

In this regard, Aviva Investors global head of governance Mirza Baig told the media, “Investors remain skeptical, particularly as this move is being forced on the company by climate change.”

“BP’s challenge lies in the building up of its skillset in renewable energy solutions and a competitive advantage in its chosen areas that allows investors to believe they can deliver attractive financial returns from the capital allocated,” Baig added.

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