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|21 October, 2018

Malaysia's Petronas buys 10% stake in Oman's Al Khazzan field

OOCEP holds a 40% stake in the block, while Britain's BP holds the remaining 60%

The logo of a Petronas fuel station is seen with the Petronas Twin Towers in the background in Kuala Lumpur, Malaysia. Picture taken February 10, 2016.

The logo of a Petronas fuel station is seen with the Petronas Twin Towers in the background in Kuala Lumpur, Malaysia. Picture taken February 10, 2016.

REUTERS/Olivia Harris

KUALA LUMPUR- Malaysia's Petroliam Nasional Berhad (Petronas) said on Sunday its subsidiary would buy a 10 percent stake in Oman's Al Khazzan gas field, following a bidding exercise held by the exploration arm of state-owned Oman Oil Company.

The Petronas unit, PC Oman Ventures Ltd, would acquire the stake in Block 61 of the field, which is expected to produce around 1.5 billion cubic feet of natural gas per day by 2020.

"Completion of the transaction is subject to closing conditions," Petronas said in a statement.

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"Further information will be made available, as and when appropriate."

Oman Oil Company Exploration and Production (OOCEP) said in a statement on Twitter that the sale was "subject to approval from the Sultanate of Oman’s government and other closing conditions".

OOCEP holds a 40 percent stake in the block, while Britain's BP holds the remaining 60 percent.

(Reporting by Rozanna Latiff; Editing by Kirsten Donovan) ((rozanna.latiff@thomsonreuters.com; +603 23338034; Reuters Messaging: rozanna.latiff.thomsonreuters.com@reuters.net))