BP will sell a stake in an Omani gas block to Thailand’s national energy firm for $2.6 billion, part of a push to divest billions of dollars of assets and focus more on renewable energy.
PTT Exploration and Production Public Co. Ltd. has agreed to pay the sum for 20% of Block 61, according to statements from both companies on Monday.
The deal should help BP deliver on its goal of selling $25 billion of assets by 2025, easing its debt burden after the coronavirus pandemic hammered demand for energy. Like other oil majors, the company has also pledged to eliminate most of its greenhouse gas emissions over the coming decades.
BP’s shares fell to the lowest in around 25 years in October, shortly after it cut its dividend for the first time in a decade and Chief Executive Officer Bernard Looney announced a shift toward greener energy. The London-based firm is due to report fourth quarter earnings on Tuesday, when investors will be paying attention to how much progress BP has made in reducing its liabilities.
Source: Bloomberg
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