IOC acquires Shell's 17 pc Oman oilfield

Indian Oil Corp (IOC), the country's largest oil firm, today said it has acquired Royal Dutch Shell's 17 per cent stake in the Makhaizna oilfield in Oman for USD 329 million.

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

"IOC 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 regulatory filing.

IOC made the acquisition through its wholly-owned subsidiary, IOCL Singapore Pte Ltd. The effective date of transaction is January 1, 2017.

The field is operated by Occidental Mukhaizna LLC with 45 per cent stake. The other partners are Oman Oil Company S.A.O.C (20 per cent), Liwa Energy Ltd (15 per cent), Total E&P Oman (2 per cent) and Partex (Oman) Corporation (1 per cent).

"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," it said.