Shell sells Mukhaizna stake to Indian firm

Muscat, April 5 – Shell Overseas Holdings Limited announced on Thursday the completion of the sale of Shell Exploration and Production Oman Limited (SEPOL), which holds a 17 per cent participating interest in the Mukhaizna Production Sharing Agreement in Oman, to IOCL Singapore PTE Ltd (ISPL), a subsidiary of Indian Oil Corporation Limited (IndianOil), for a transaction value of $329 million. This acquisition includes the marketing rights for entitlement oil. The effective date of the transaction is January 1, 2017.
Upon completion of this transaction, IndianOil’s stake in Mukhaizna will be 17 per cent, with the remaining 83 per cent owned by Occidental Mukhaizna LLC (45 per cent), Oman Oil Company SAOC (20 per cent), Liwa Energy Limited (15 per cent), Total E & P Oman (2 per cent) and Partex (Oman) Corporation (1 per cent). Occidental Mukhaizna LLC is the operator of the Mukhaizna asset.
Shell Oman Country Chair, Chris Breeze said, “We are pleased to assist the entry of IndianOil, an integrated energy company with activities in oil, gas, petrochemicals and one of India’s largest companies, into the upstream sector in Oman. Shell remains fully committed to Oman’s energy future and is actively seeking to make further investments in the country.”
The Mukhaizna oilfield is the single largest producing individual oilfield in Oman, contributing about 13 per cent of total Omani crude oil production of 120,000 barrels per day.