Thursday, March 28, 2024 | Ramadan 17, 1445 H
broken clouds
weather
OMAN
23°C / 23°C
EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Oman Oil Co to divest stake in fuel giant CLH

1016953
1016953
minus
plus

By Conrad Prabhu — MUSCAT: MAY 20 - An international investment fund says it has agreed a deal to acquire state-owned energy investment firm Oman Oil Company’s 10 per cent stake in Compania Logistica de Hidrocarburos (CLH), which owns and operates the largest fuel pipeline and storage network in Spain. Macquarie European Infrastructure Fund 5 (MEIF5), which is part of the prominent global financial group Macquarie, announced at the weekend that it has signed binding agreements for the acquisition of a 20 per cent interest in CLH. Divesting their stakes in favour of MEIF5 are Oman Oil Company (10 per cent) and AMP Capital (10 per cent).


Oman Oil Company picked up the stake in CLH in 2002, thereby gaining a presence in one of Europe’s largest refined petroleum products transportation and storage giants. At present, CLH owns and operates over 90 per cent of Spain’s refined products pipeline running a total length of over 4,000 kilometres.  The company also handles around 8 million cubic metres of oil storage capacity, represents more than half of Spain’s national oil storage capacity.


In addition, CLH also has a strong presence in the United Kingdom, with over 2,000 kilometres of pipeline and around one million cubic metres of storage capacity under ownership. The company also operates a fuel storage terminal at Dublic Airport in Ireleand.


Significantly, Oman Oil Company’s divestment from CLH will not result in a complete break in its longstanding association with the Madrid based fuel logistics heavyweight.  In the Sultanate, CLH is a joint venture partner with Oman Oil Refineries & Petroleum Industries Company (Orpic), the nation’s refining flagship, which is 20 per cent owned by Oman Oil Company.


The joint venture, Orpic Logistics, is overseeing the development of the Muscat Suhar Product Pipeline and Al Jifnain Terminal project — a $320m project that will help secure and modernise the nation’s fuel storage and distribution system. MEIF5, which is managed by Macquarie Infrastructure and Real Assets, says it expects the acquisition of the 20 per cent stake in CLH to be completed by June.


SHARE ARTICLE
arrow up
home icon