Shell seeks buyers for Oman field stake

Royal Dutch Shell is seeking to sell its 17 per cent stake in the Mukhaizna oil field in Oman, which could fetch up to $200m, banking sources said.

The sale process is led by investment bank Rothschild, the sources said.

Shell and Rothschild did not respond to requests for comment.

The Mukhaizna heavy oil field, operated by Occidental Petroleum, reached an average oil production rate of 127,000 barrels of oil equivalent per day in 2016, according to Occidental’s annual report.

The stakeholders in the Mukhaizna field signed a 30-year production-sharing contract with the government of Oman in 2005 and have since increased its output by 16 fold.

The sale process is part of the Anglo-Dutch company’s vast asset disposal programme launched in 2015 and following its $54bn acquisition of BG Group last year.

So far, more than $25bn worth of deals have been completed or in progress, on track to reach a $30bn target by 2018, according to Shell.

Shell is not selling its 34 per cent interest in Petroleum Development Oman (PDO) which operated more than 160 oil fields mostly in the centre and south of the Middle East sultanate, according to the sources.

Oman is not a member of the Organization of Petroleum Exporting Countries (OPEC) but has agreed to take part in a global pact this year to curb output to support oil prices.