DUBAI, June 20 (Reuters) - BP has agreed a price forany gas produced from Oman's Khazzan project as part of acommercial framework agreement with the government, the energycompany said on Thursday.
BP has been negotiating for months over the price it willget for selling any gas produced from the Khazzan tight gasproject to the local market.
The two sides have now agreed the price as part of acommercial framework which includes expected volumes andinvestment costs.
"We are pleased to have reached a price agreement that isacceptable to the government of Oman and delivers value to BP," a spokesman for the company said.
Artificially low government-controlled prices typical acrossthe Gulf have discouraged new projects needed to meet theregion's rising demand for natural gas.
The spokesman declined to give the agreed gas sales price.