MUSCAT: Petroci Holding, the state-owned energy company of Côte d’Ivoire in West Africa, has seen its stake in Masirah Oil Limited (MOL), which owns and operates Block 50, offshore the Sultanate of Oman’s east coast, rise to 12.5 per cent, up from 8.39 per cent previously.

The uptick, announced by MOL’s majority stakeholder Singapore-based Rex International Holding, follows the settlement of a legal claim brought by Petroci Holding against fellow shareholders of Masirah Oil Limited.

Petroci Holding had a minority share in Masirah Oil Limited when the latter successfully achieved first oil from the Yumna Oilfield in Block 50 in February 2020, effectively unlocking the first petroleum system off Oman’s east coast.

However, in August 2021, Petroci filed a claim against Rex Holding’s local subsidiary, Rex Oman Limited, a subsidiary of Masirah Oil Limited (with 86.37 per cent stake). Also included in the legal claim, filed before the Commercial Division of the High Court in British Virgin Islands, were certain past and present directors of Masirah Oil. The claim challenged certain actions that led to a dilution of Petroci’s interest in Masirah Oil as a partner and minority shareholder.

Last week, the Board of Directors of Rex International announced that the parties involved in the suit had signed a Global Settlement Agreement with Petroci Holding, effectively providing for a full and final settlement of the claim.

As part of the settlement, a total of 21,558 ordinary shares in MOL will be transferred by Rex Oman to Petroci. This will increase Petroci’s shareholding in MOL to 12.5 per cent and reduce Rex Oman’s shareholding in MOL to 81.14 per cent.

“On closing of the Settlement Agreement, MOL and Petroci will enter into a service agreement pursuant to which Petroci will provide technical services to MOL at no cost. If MOL achieves certain agreed key performance targets during the 18-month term of the service agreement, MOL will issue new shares to Petroci which will result in Petroci’s shareholding interest in MOL increasing to 25 per cent,” Rex added in a press statement.

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