The Abu Dhabi based Mubadala Development Company further expanded its oil & gas global portfolio after its wholly owned subsidiary, Liwa Energy Limited, and Occidental Petroleum Corporation (OXY) signed Heads of Agreement with the Ministry of Oil & Gas in the Sultanate of Oman, governing the development of the Mukhaizna heavy oil field under a new production sharing agreement.

The current production of the field is approximately 10,000 barrels per day. OXY, Liwa and their partners in the project expect to invest over US $2 billion to implement a large-scale steam flood to increase production from the field to 150,000 barrels per day within the next few years.

The agreement was signed by His Excellency Dr Mohammed Bin Hamad Al Rumhy, Minister of Oil & Gas, on behalf of the Government of Oman, His Excellency Ahmed Ali Al Sayegh, Board Member, Mubadala Development, on behalf of Liwa Energy, and Mr Casey Olson, Executive Vice President, OXY. “Today’s signing in Oman is in line with our objective to build a substantial oil & gas portfolio in the region and internationally” Said HE Al Sayegh as he described the company venture into the oil & gas sector in Oman. “Mubadala looks forward to developing further business opportunities in Oman and in the region.” Senior representatives from Mubadala Development, the Ministry of Oil & Gas, and Occidental Petroleum attended the signing ceremony.

Mubadala Development is a Public Joint Stock company, established and wholly owned by the government of Abu Dhabi with a mission to invest in commercially-viable, strategic, industrial and commercial partnerships. The company’s portfolio of international investments includes a stake in nine oil exploration blocks in Libya and a 25% stake in the Dutch fleet management giant LeasePlan Corporation, while its local and regional investments include a 51% majority stake in Dolphin Energy and shares in many other companies, such as Aldar Properties, National Central Cooling Company, Abu Dhabi Ship Building, and Imperial College London Diabetes center in Abu Dhabi. Mubadala is also involved in a Public-Private Partnership to develop the UAE University’s new campus in Al Ain.