Shell Overseas Holdings Limited has announced the sale of Mukhaizna asset in Oman to IOCL Singapore PTE Ltd (ISPL), a subsidiary of Indian Oil Corporation Limited (IndianOil), for an amount of US$329mn
The Mukhaizna oil field, located in Al Wusta Governorate in Oman, is being operated by Occidental Mukhaizna LLC.
Under the terms of the agreement, IndianOil’s stake in Mukhaizna will be 17 per cent. The remaining portion will be 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 (two per cent) and Partex (Oman) Corporation (one per cent).
The move is expected to enhance the upstream oil and gas activities in Oman. This is in line with the Oman government’s initiative to boost oil and gas resources in the country.
IndianOil is an integrated energy company which is in the business of oil, gas, petrochemicals. With the new move, the company aims to expand its reach outside India and explore oil and gas opportunities in the Middle Eastern countries.
Shell said that it is actively seeking to make further investments to develop oil and gas industry in Oman. The move to divest its stakes in Mukhaizna asset is in accordance with the company’s strategy to sell non-core assets or companies to re-shape Shell into a more resilient and focused company.
The sale of Mukhaizna asset takes Shell a step closer to its divestment target of US$30bn, said the company.
