Shell said it has completed the sale of its Oman unit and asset to IndianOil’s Singapore arm for US$329 million as part of its $30 billion divestment strategy to make the business more resilient.
Shell said it has completed the sale of its Oman unit and asset to IndianOil’s Singapore arm for US$329 million as part of its $30 billion divestment strategy to make the business more resilient.
Shell Exploration and Production Oman Limited (SEPOL) held a 17 per cent participating interest in the Mukhaizna Production Sharing Agreement in Oman, which will be owned by IOCL Singapore PTE, a subsidiary of Indian Oil Corporation Limited.
The remaining 83 per cent in Mukhaizna is owned by Occidental Mukhaizna LLC (45 per cent), Oman Oil Company S.A.O.C (20 per cent), Liwa Energy Limited (15 per cent), Total E & P Oman (2 per cent) and Partex (Oman) Corporation (1 per cent). Occidental Mukhaizna LLC is the operator of the Mukhaizna asset.
This acquisition includes the marketing rights for entitlement oil. The effective date of the transaction is 1st January 2017, Shell said in a statement.
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 said its decision to divest continues to be driven by the company’s strategy to sell non-core assets or companies to re-shape Shell into a simpler, more resilient and focused company.
Source: Pipeline ME
