MOSCOW (MRC) -- Oman LNG and BP Singapore have signed a major sales and purchase agreement (SPA) for supplying liquefied natural gas (LNG) to the latter, said Hydrocarbonprocessing.
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 year, 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 our LNG business and expand our LNG business. Oman will continue to be a global preferred destination for sourcing clean energy,” said Mohammed Dr. 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 socio-economic fabric of the Sultanate."
The announcement was made by Harib Al Kitani, chief executive officer (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. The LNG plant at Qalhat, in Sur, has the capacity to receive and process additional volumes as it has recently been operating with some spare capacity.
MRC