Qatar Navigation (Milaha) has reached a preliminary agreement to buy Qatar Petroleum’s stake in oilfield services firm Al Shaheen Holding, reported Reuters.
Qatar Navigation said a binding agreement for the transaction had not been finalized, but the deal was expected to be in the range of $110m to $180m and would be funded from existing cash reserves, according to Arabian Business.
The transaction is expected to be completed in Q4 of 2016. Milaha said it expects the deal to have a positive impact on the financial position of Milaha and its shareholders.
Qatar Petroleum hired HSBC in February to advise it on the sale of Al Shaheen as the state-owned Qatari energy giant, struggling with low oil and natural gas prices, seeks to divest from non-core businesses.