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APR 06 2018

IOC acquires Shells entire stake in Oman oilfield for $329 million

  • Economic Times, ET Bureau / Hyderabad
  • Created: Fri 06th APR 2018

 

Indian Oil Corporation (IOC), the nation's largest fuel retailer, today announced it has acquired Royal Dutch Shell’s entire 17 per cent stake in Makhaizna oilfield in Oman for $329 million.

“IndianOil has today completed acquisition of 17 per cent participating interest in Mukhaizna oilfield (including the marketing rights for entitlement oil) by acquiring 100 per cent equity stake in Shell Exploration and Production Oman Ltd from Shell Overseas Holdings Ltd for a transaction value of USD 329 million,” the company said in a filing at the Bombay Stock Exchange (BSE).

The Mukhaizna oilfield is the single-largest producing oilfield in Oman contributing around 13 per cent of the total Omani crude oil production of 120,000 barrels per day.

"This is IOC's first producing upstream acquisition in Oman which will further enhance its growth in the upstream sector in the Middle East. The acquisition also has a significant strategic importance in India, both in terms of augmenting India's energy security as well as enhancing India's stature in the global political and economic arenas," IOC said.

According to the information provided by the company, the field is operated by Occidental Mukhaizna LLC with 45 per cent stake. Other partners include Oman Oil Company S.A.O.C with 20 per cent, Liwa Energy Ltd with 15 per cent, Total E&P Oman with 2 per cent) and Partex (Oman) Corporation with 1 per cent stake.

IOCL Singapore Pte Ltd, a wholly-owned subsidiary of Indian Oil has made the acquisition with 1 January 2017 as the effective date of transaction.

Tags

TOTAL Oil Energy Security Energy Indian Oil Corporation Ltd Shell Royal Dutch Shell Crude Oil India

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