If you would like to ask our webinar guest speakers from WS Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund a question please submit them here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksBP Share News (BP.)

Share Price Information for BP (BP.)

London Stock Exchange
Share Price is delayed by 15 minutes
Get Live Data
Share Price: 506.20
Bid: 506.50
Ask: 506.70
Change: 2.10 (0.42%)
Spread: 0.20 (0.039%)
Open: 506.10
High: 511.70
Low: 505.30
Prev. Close: 504.10
BP. Live PriceLast checked at -

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

UPDATE 3-BP signs $16 bln tight gas project deal in Oman

Mon, 16th Dec 2013 15:23

* Plateau production of 1 bcf/day seen by 2018

* BP to hold 60 percent of project, spend around $9.6 bln

* Khazzan tight gas project vital for Oman growth

By Sami Aboudi and Daniel Fineren

MUSCAT/DUBAI, Dec 16 (Reuters) - BP will drill some300 wells to flush gas trapped deep under the Omani desert overthe next 15 years in a $16-billion project that Oman is relyingon to keep its economy growing.

The Khazzan tight gas project, which aims to extract aroundone billion cubic feet (bcf) per day of gas from sandstone atdepths of up to 4,500 metres in central Oman, is a showcase forBP's tight gas extraction technology.

Its success is vital for a country whose own gas exportshave been eaten away by its voracious appetite for energy.

"Today's signing is an important step in the Sultanate ofOman's plans to meet growing demand for energy over the comingdecades and to contribute to economic development in Oman," thecountry's oil and gas minister, Mohammed Al Rumhy, said in astatement after the signing in Muscat.

"The Khazzan project is the largest new upstream project inOman and a pioneering development in the region in unlockingtechnically challenging tight gas through technology."

BP will have a 60 percent operating stake in the project,which involves a 15-year programme of drilling into sandstonethousands of metres below the surface to extract gas usinghydraulic fracturing technology developed in the United States.

BP expects to invest around $9.60 billion over the fullfield development, in accordance with its 60 percent stake inthe $16 billion project, a BP spokesman said. State-owned OmanOil Company Exploration & Production (OOCEP) will have a 40percent stake. The $16 billion total investment estimateincludes around $1.5 billion already spent.

MONTHS OF HAGGLING

After months of haggling, Muscat agreed in mid-2013 on theprice at which BP could sell gas it can squeeze from deep underthe desert of central Oman.

Neither side would reveal the price they had agreed to makethe project worthwhile for BP, but BP Chief Executive Bob Dudleysaid the price was competitive within BP's global investmentportfolio.

"We are a company who have said that we will use a verydisciplined capital framework and for the rest of the decade wewill keep BP's capital investments between $24 and $27 billion ayear," Dudley told reporters.

"There are other projects that we have put aside but this isone that is big, it is important and it is a good partnership...It fits with our strategy as a company to develop largereservoirs."

Construction is expected to begin in 2014, with first gasexpected in late 2017 and plateau production of around 1 bcf, or28.3 million cubic metres, per day expected in 2018.

This would be enough to meet around a third of the country'scurrent domestic gas needs. But Omani energy demand is risingrapidly and Muscat also hopes to import Iranian gas in a 25-yeardeal signed in August.

"The country needs the gas to develop its economy," Al Ruhmytold journalists. "Our needs for gas increase day by day."

BP expects to develop around 7 trillion cubic feet (tcf) ofgas in the Khazzan project, and to pump around 25,000 barrelsper day (bpd) of gas condensate, a light oil, helping ensure agood rate of return from the investment.

The 30-year production sharing and gas sales agreements alsoallow BP to appraise more gas resources in Oman's Block 61,which it expects to develop in later phases.

The Omani government will take 55 percent of the gas salesrevenues, while the rest will be split between the projectpartners, with 60 percent for BP and 40 percent for (OOCEP)after deducting costs, the minister told the news conference.

BP shares rose from close on Friday at 465.55 penceto around 470.35 pence at 1430 GMT on Monday.

LOW PRICES

Rock-bottom, government-set gas prices prevalent in theMiddle East have discouraged investments in projects needed tomeet rapidly rising demand for gas across the region, makingmany countries rely increasingly on imports or watch rampantdomestic demand eat into their gas exports.

In a rare Middle East move to cut huge fuel subsidy bills,Oman plans to double natural gas prices for some industrialconsumers from $1.5/mmbtu in 2012 to $3/mmbtu in 2015.

Oman currently exports gas from liquefied natural gas (LNG)plants that were planned before the small non-OPEC oil producerwas forced to revise down its gas reserves.

Oman's gas appetite has already taken a bite out of its LNGexports and analysts say the success of Khazzan will be vitalfor the country to keep exporting over the next decade.

BP said it had also signed a non-binding memorandum ofunderstanding with state-run and Oman Oil Company to develop aone million tonne per year acetic acid plant in Duqm, on theArabian Sea coast of Oman.

More News
25 Mar 2024 16:51

LONDON MARKET CLOSE: Renewed global tensions put pressure on stocks

(Alliance News) - Stock prices in London started the week in bad shape and closed lower on Monday, as investors sat on their hands amid rising global tensions.

Read more
21 Mar 2024 15:00

UK dividends calendar - next 7 days

Friday 22 March 
easyJet PLCdividend payment date
FRP Advisory Group PLCdividend payment date
Gulf Investment Fund PLCdividend payment date
Henderson Opportunities Trust PLCdividend payment date
Hercules Site Services PLCdividend payment date
Impax Asset Management Group PLCdividend payment date
JLEN Environmental Assets Group Ltddividend payment date
JPMorgan Multi-Asset Growth & Income PLCdividend payment date
Mattioli Woods PLCdividend payment date
Mobeus Income & Growth 2 VCT PLCdividend payment date
Mobeus Income & Growth 4 VCT PLCdividend payment date
Ramsdens Holdings PLCdividend payment date
Riverstone Credit Opportunities Income PLCdividend payment date
Ruffer Investment Co Ltddividend payment date
Samuel Heath & Sons PLCdividend payment date
Troy Income & Growth Trust PLCdividend payment date
Unilever PLCdividend payment date
Monday 25 March 
AstraZeneca PLCdividend payment date
Endeavour Mining PLCdividend payment date
Mountview Estates PLCdividend payment date
Shell PLCdividend payment date
Tuesday 26 March 
no events scheduled 
Wednesday 27 March 
abrdn Diversified Income & Growth PLCdividend payment date
Thursday 28 March 
Alliance Trust PLCdividend payment date
Balanced Commercial Property Trust Ltddividend payment date
Berkeley Group Holdings PLCdividend payment date
BHP Group Ltddividend payment date
BlackRock Energy & Resources Inc Trust PLCex-dividend payment date
BlackRock Sustainable American Income Trust PLCex-dividend payment date
BlackRock Throgmorton Trust PLCdividend payment date
BP PLCdividend payment date
City of London Investment Group PLCdividend payment date
Crown Place VCT PLCdividend payment date
CT UK Capital & Income Investment Trust PLCdividend payment date
Develop North PLCdividend payment date
Diversified Energy Co PLCdividend payment date
Downing Renewables & Infrastructure Trust PLCdividend payment date
Gateley Holdings PLCdividend payment date
Genus PLCdividend payment date
Hargreaves Lansdown PLCdividend payment date
HICL Infrastructure PLCdividend payment date
Idox PLCex-dividend payment date
Imperial Brands PLCdividend payment date
Melrose Industries PLCex-dividend payment date
Mid Wynd International Investment Trust PLCdividend payment date
Moneysupermarket.com Group PLCex-dividend payment date
NextEnergy Solar Fund Ltddividend payment date
North Atlantic Smaller Cos Investment Trust PLCdividend payment date
Personal Group Holdings PLCex-dividend payment date
Premier Miton Global Renewables Trust PLCdividend payment date
Quartix Technologies PLCex-dividend payment date
Renewables Infrastructure Group Ltddividend payment date
Schroder Real Estate Investment Trust Ltddividend payment date
SDCL Energy Efficiency Income Trust PLCdividend payment date
Smith & Nephew PLCex-dividend payment date
Taylor Wimpey PLCex-dividend payment date
Thames Ventures VCT 2 DSO 1 D PLCdividend payment date
Travis Perkins PLCex-dividend payment date
Utilico Emerging Markets Trust PLCdividend payment date
Vaalco Energy Incdividend payment date
Value & Indexed Property Income Trust PLCex-dividend payment date
VH Global Sustainable Energy Opportunities PLCdividend payment date
Volution Group PLCex-dividend payment date
Wynnstay Group PLCex-dividend payment date
  
Comments and questions to newsroom@alliancenews.com
  
A full 14-day events calendar is provided each day with a subscription to Alliance News UK Professional.
  
Copyright 2024 Alliance News Ltd. All Rights Reserved.

Read more
19 Mar 2024 16:57

LONDON MARKET CLOSE: European large-caps rise on eve of Fed decision

(Alliance News) - Blue-chip stock prices in Europe closed higher on Tuesday, showing little signs of nerves ahead of Wednesday's Federal Reserve decision and UK inflation reading.

Read more
19 Mar 2024 11:52

LONDON MARKET MIDDAY: European markets flat ahead of Fed and BoE

(Alliance News) - Stock prices in London were down at midday on Tuesday, as investors sat on their hands ahead of interest rate decisions from the UK and US.

Read more
18 Mar 2024 11:49

LONDON MARKET MIDDAY: FTSE 100 as shakes off pre-interest rate nerves

(Alliance News) - Stock prices in London were higher at midday Monday, as eyes were firmly on interest rate decisions across the globe.

Read more
15 Mar 2024 13:07

IN BRIEF: Costain wins place on GBP4 billion carbon capture project

Costain Group PLC - Maidenhead, Berkshire-based construction and engineering firm - Selected as one of nine specialist partners to deliver a carbon capture project beneath the North Sea off the east cost of England. The engineering, procurement, and construction contracts for the East Coast Cluster have a combined value of around GBP4 billion, Costain says. The contracts will be with Net Zero Teesside Power and the Northern Endurance Partnership. NZT Power is a electricity generating joint venture of the UK's BP PLC and Norway's Equinor. NEP is a joint venture of BP, Equinor and France's TotalEnergies SE that will provide CO2 transport and storage for the East Coast Cluster. Final investment decisions are expected in September or earlier, with the projects aiming for commercial operations from 2027.

Read more
15 Mar 2024 12:11

LONDON MARKET MIDDAY: FTSE 100 underperforms despite mining, oil boost

(Alliance News) - London's FTSE 100 overcame a muted morning to head into Friday afternoon on the up, though its progress was shy of the loftier gains seen by mainland European peers, as investors showed some signs of trepidation ahead of a pair of interest rate decisions next week.

Read more
14 Mar 2024 11:54

BP details green credentials in similar push towards net zero as Shell

(Alliance News) - BP PLC on Thursday outlined similar targets to cut emissions as peer Shell PLC, as both oil and gas majors strive to become net zero for carbon emissions by 2050.

Read more
14 Mar 2024 10:19

BP picks up Ashford site to boost electric charging scope for trucks

(Alliance News) - BP PLC on Thursday stepped up plans to increase its electric charging capacity for heavy goods vehicles by buying one of the largest truck stops in Europe.

Read more
8 Mar 2024 13:42

BP appoints Aviva boss Amanda Blanc as senior independent director

(Sharecast News) - Oil giant BP said on Friday that it has appointed Aviva chief executive Amanda Blanc as senior independent director with effect from after the annual meeting on 25 April.

Read more
8 Mar 2024 12:20

IN BRIEF: BP promotes Aviva chief executive officer to senior director

BP PLC - London-based oil major - Non-Executive Director Amanda Blanc will be appointed as a senior independent director, effective from April 25 at the conclusion of BP's annual general meeting. Blanc joined BP's board in September 2022. She has been group chief executive officer of Aviva PLC since July 2020. Company also says Senior Independent Director Paula Reynolds will retire at the AGM's conclusion, having served on the board for nine years. Non-Executive Director John Sawers will also be retiring.

Read more
8 Mar 2024 10:33

BP pays Auchincloss £8m in 2023, claws back £1.8m from Looney

(Sharecast News) - BP chief executive officer Martin Auchincloss was paid £8m for his services in a particularly prosperous year, it was revealed on Friday, as it managed to claw back a further £1.8m from its former head Bernard Looney.

Read more
4 Mar 2024 15:29

London close: Stocks languish ahead of Wednesday's Budget

(Sharecast News) - London's stock markets finished in the red on Monday, reflecting investor apprehension ahead of the impending Spring Budget.

Read more
4 Mar 2024 10:43

Jefferies upgrades BP to 'buy'

(Sharecast News) - Jefferies upgraded BP on Monday to 'buy' from 'hold' and lifted the price target to 570p from 520p.

Read more
4 Mar 2024 08:59

LONDON BROKER RATINGS: Jefferies says buy BP; UBS says buy Compass

(Alliance News) - The following London-listed shares received analyst recommendations Monday morning:

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.