Shell announces sale of interest in Mukhaizna field in Oman to Indian Oil Corporation for $329mn
Shell continues its global $30bn divestment strategy by offloading stake in Omani heavy oil asset.
Shell Overseas Holdings has announced the completion of the sale of Shell Exploration and Production Oman, which holds a 17% participating interest in the Mukhaizna Production Sharing Agreement in Oman, to IOCL Singapore, a subsidiary of the Indian Oil Corporation (IndianOil) for a transaction value of $329mn. This acquisition includes the marketing rights for entitlement oil.
Upon completion of the deal, IndianOil’s stake in Mukhaizna will consequently be 17%, with the remaining 83% owned by Occidental Mukhaizna, holding 45%, the Oman Oil Company with 20%, Liwa Energy 15%, Total E & P Oman 2% and Partex (Oman) Corporation, owning the remaining 1%. Occidental Mukhaizna remains 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.”
Shell’s decision to divest continues to be driven by its strategy to sell non-core assets or companies to re-shape the firm into a “simpler, more resilient and focused company”. This deal takes Shell a step closer to its divestment target of $30bn.
Shell’s intention to sell its holding at the Mukhaizna oilfield was first reported six months ago. The field consists of heavy oil. In 2016, an Occidental annual report stated that output averaged 127,000 barrels of oil equivalent per day.