(MENAFN- Muscat Daily) Oman Oil Co is in talks with Occidental Petroleum Corporation (Oxy) to buy its assets in the sultanate chief of the national oil investment company said on Tuesday.
Speaking to reporters on the sidelines of the 2nd Oman Energy Forum on Tuesday Eng Isam al Zadjali CEO of Oman Oil said 'We are ready when they are. We are looking to buy Oxy's local assets in Oman.'
'Our understanding is that Oxy is looking to sell oil assets but what percentage of assets and which blocks they are yet to tell us. We are looking at data gathering. We are in negotiation and whatever they are willing to give up we will take' he said.
The California US-based Oxy is seeking to raise around US$8bn by selling stakes in its Middle East business.
According to previous reports Oxy was willing to win an agreement for a single sale to a group of investors from Oman the UAE and Qatar but later said that it may need to break up the Middle East assets and sell them to individual countries.
Zadjali said that the possibility of a regional alliance to buy Oxy assets no longer exists and now each country is looking at Oxy's local assets.
Oman Oil recently signed a US$1.85bn revolving credit facility with 16 banks. The transaction was well received by the market with the facility attracting a subscription of US$3.75bn.
On how the company intends to use the funds Zadjali said 'We do not have any particular plans. We may use it to fund existing projects or small acquisitions. The amount of US$1.85bn is not enough to fund all the projects in the pipeline but this is a first step.'
Oxy's Oman operations are concentrated in the Mukhaizna field in south-central Oman and Blocks 9 27 and 62 in northern Oman. During its more than 30-year tenure in Oman Oxy has increased production and reserves and is now the country's largest independent oil producer.
Speaking at the Oman Energy Forum Zadjali said Oman's energy sector needs to build on its pioneering role in enhanced oil recovery (EOR) and tight-gas developments in the Middle East to drive the sultanate's ongoing transformation into a diversified knowledge economy.
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