Qatar Navigation (Milaha) has reached a preliminary agreement to buy Qatar Petroleum’s (QP) stake in oilfield services firm Al Shaheen Holding
According to company sources, QP had hired HSBC in February to advise it on the sale of Al Shaheen as the state-owned Qatari energy giant, grappling with low oil and natural gas prices, seeks to divest from non-core businesses.
Al Shaheen has three joint ventures in oilfield services, two with GE Oil and Gas and one with the Middle East unit of Weatherford.
Qatar Navigation said a binding agreement for the transaction had not been finalised but the deal was expected to be in the range of US$110mn to US$180mn and would be funded from existing cash reserves.
Subject to due diligence and a final agreement, the transaction could close in the Q4 this year, the company added.
