Indian Oil acquires 17% stake in Oman's Mukhaizna oil field

Muscat - 

Indian Oil Corporation Ltd (IOCL) has acquired a 17 per cent participating interest in Oman's Mukhaizna oil filed. 'IOCL has completed the acquisition of 17 per cent participating interest in Mukhaizna oil field (including the marketing rights for entitlement oil) by acquiring 100 per cent equity stake in Shell Exploration & Production Oman Ltd from Shell Overseas Holdings Ltd, for a transaction value of US$329mn,' IOCL said in a filing to the Bombay Stock Exchange (BSE) on Thursday.

Indian Oil has made this acquisition through its wholly owned subsidiary IOCL Singapore Pte Ltd. The Mukhaizna oil field is the largest producing individual oil field in Oman, contributing approximately 13 per cent of total Omani crude production with current production of 120,000 barrels per day.

It is also the largest steam flood project in the Middle East. According to the Indian Oil's disclosure, Mukhaizna oil field is operated by Occidental Mukh-aizna (45 per cent). The other partners are Oman Oil Company (20 per cent), Liwa Energy Limited (15 per cent), Total E&P Oman (2 per cent) and Partex Oman Corporation (1 per cent).

'This is Indian Oil'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 to India, both in terms of augmenting India's energy security as well as enhancing India's stature in the global political and economic arenas,' Indian Oil said.

muscat daily recycle