MB Group looking to acquire oil assets

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MB Group invested around US$240-US$250mn last year in order to acquire new equipment for oil services companies and to enhance crude oil production of Petrogas.

"We are looking for acquiring assets (of oil companies) in the Middle East, North Africa and Asia. These are our core regions. One of the companies is an existing oil firm in North Africa. But these are all in due diligence stage," Sushil Srivastava, chief financial officer of MB Holding Company said.

"This year, in a normal level, we will continue to do the same level of investment. But if we come across any acquisition, which makes sense for us, then the investment will be more," Srivastava added, reported Times of Oman.

Srivastava discussed the company's oil exploration business. Block 5, which is equally owned by Petrogas and China National Petroleum, was acquired from another company. The production was only 4,000 bpd, which was increased to 31,000 bpd now.

Daleel Petroleum is operating the block but Petrogas are still developing it. It is a development plan, which is an ongoing activity. The company is drilling more wells to raise production - with the goal to see production hit 40,000 bpd within the next two to three years. Petrogas also produces 1,600 barrels of oil a day from Block 7, which is fully owned by the company.

MB Group is looking at making further investments to increase production as the block (concession) will expire by 2015. The company is in discussion with the Ministry of Oil and Gas to further renew the concession for another 10 years.

MB Petroleum operates in Oman and 15 other countries. The company has four segments, MB Petroleum, Petrogas E&P, Mawarid Mining and United Engineering Services, engaged in oil and gas servicing, oil exploration and production.

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