Tapping New Potential

A seven-year agreement to sell LNG to BP Singapore is going to be a game changer for Oman, helping to unlock its additional reserves as well as sustain and expand its LNG business. An OER report.

Oman LNG and BP Singapore have signed a major sales and purchase agreement (SPA) for supplying liquefied natural gas (LNG) to the latter. The agreement, a free-on-board (FOB) contract starting from January 2018, will span over a period of seven years for lifting 1.1 million tonnes per annum (mtpa), which is equivalent to approximately 18 LNG cargoes a year. It will be an important boost to the global LNG market where Oman LNG currently contributes a significant amount.

“The new agreement will not only unlock additional reserves but will also sustain and expand our LNG business. Oman will continue to be a global preferred destination for sourcing clean energy,” said HE Dr Mohammed bin Hamad Al Rumhy, Minister of Oil and Gas and the chairman of Oman LNG.

“The revenues from this transaction will benefit Oman’s national economy and boost our gross domestic product and will also boost efforts towards In-Country Value (ICV) and Corporate Social Responsibility (CSR), all of which are significant drivers to the socioeconomic fabric of the Sultanate.”

The announcement was made by Harib Al Kitani, CEO of Oman LNG, and Jonathan Shepard, chief operating officer (COO) of BP LNG. The event was also attended by Al Rumhy as well as several top-level officials from the oil and gas industry in Oman.