bp has agreed to sell a 20% share in a gas project in Oman for $2.6 billion (£1.9bn).
The oil and gas giant is selling a third of its stake of the Block 61 project to PTT Exploration and Production Public Company Limited (PTTEP), the national petroleum corporation in Thailand.
Block 61 site, which covers 3,950 square kilometres in central Oman, contains what is claimed to be the largest tight gas development in the Middle East.
Tight gas is natural gas produced from reservoir rocks that need massive hydraulic fracturing to produce the well at economic rates.
Hydraulic fracturing is a well stimulation technique involving the fracturing of bedrock formations by a pressurised liquid.
The facility has a daily production capacity of 1.5 billion cubic feet of gas and more than 65,000 barrels of condensate.
The gas from Block 61 is exported for domestic consumption into Oman’s national gas grid.
bp chief executive officer Bernard Looney said: “We are pleased to welcome PTTEP to the successful Block 61 partnership. Block 61 is a pioneering development that has applied leading techniques and technologies to maximise efficiency and minimise emissions.
“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.”