Shell’s departure from Oman’s 120,000 b/d Mukhaizna heavy oil field has facilitated India’s efforts to boost its Middle East upstream presence. The Anglo-Dutch firm announced on 5 April the sale of its 17% stake in the field to Indian state firm Indian Oil Corporation (Indian Oil) for $329mn. Backdated to 1 January 2017, the transaction marks Indian Oil’s second splash in the region in less than two months after a consortium including Indian state firms ONGC Videsh and Bharat PetroResources paid a $600mn signing bonus for 10% in Abu Dhabi’s 360,000 b/d Lower Zakum concession in earlier this year (MEES, 16 February).
The deal sees Shell exit the heavy oil field, leaving it with just one remaining upstream asset in Oman—its stake in state-led Petroleum Development Oman (Oman 60%, Shell 34%, Total 4%, Partex 2%), which remains its largest Mena asset. It also has a 30% stake in Oman LNG and a 11% interest in Qalhat LNG and signed a heads of agreement last year with Oman Oil Company (OOC) to operate Block 42, although the deal is pending final approval. (CONTINUED - 387 WORDS)
