Masirah Oil Repurchases Shares from Rex Oman

Masirah Oil, an affiliate of Singapore’s oil exploration and production company Rex International Holding, recently repurchased 102,000 shares from its wholly-owned subsidiary, Rex Oman. The repurchased shares were subsequently canceled, reducing Masirah’s issued shares from 202,000 to 100,000. This restructuring resulted in an effective disposal of 1.86% of the Rex Group’s interests in Masirah, which holds a 100% operating interest in Oman’s Block 50 and the producing Yumna Field.

The restructuring is part of Rex Group’s efforts to streamline its shareholding structures in various subsidiaries. By simplifying the ownership structure in Masirah, the company aims to have more flexibility in developing business strategies with existing and potential future partners.

Financial Details of the Restructuring

As of June 30, 2024, the net asset value and book value of Masirah were reported to be $56.85 million. The book value of the restructuring is approximately $1.06 million. The consideration for the restructuring also takes into account the settlement of intercompany payables totaling around $14.55 million, with an excess consideration amount of approximately $13.49 million.

Legal Settlement and Ownership Changes

The restructuring occurred just before a global settlement agreement was reached for a legal claim brought by Côte d’Ivoire’s Petroci Holding against Rex Oman in 2021. This claim was related to the alleged conduct of Masirah’s affairs, which Petroci claimed led to a dilution of its interest in Masirah as a partner and minority shareholder.

Following the restructuring, Rex Oman transferred 8,808 ordinary shares to Petroci, increasing Petroci’s stake in Masirah to 12.5% and reducing Rex Oman’s stake to 87.5%.

Operations in Block 50 and Yumna Field

Block 50 is an offshore concession spanning approximately 17,000 square kilometers in the Gulf of Masirah, east of Oman. The field achieved first oil in February 2020, with the field development plan for the Yumna Field and declaration of commerciality obtained in July 2020.

In June 2024, Masirah completed a multi-well drilling program at the Yumna Field using Northern Offshore’s Energy Emerger jack-up rig. The program included drilling a new in-field well and conducting work-overs on two existing production wells.