Indian Oil Corporation, the country's largest oil firm, has acquired Royal Dutch Shell's 17 per cent stake in the Makhaizna oilfield in Oman for $329 million, said a report.

Mukhaizna oilfield is the single largest producing individual oilfield in Oman, contributing about 13 per cent of total Omani crude oil production of 120,000 barrels per day, reported PTI, citing a company report.

"IOC has today completed acquisition of 17 per cent participating interest in Mukhaizna oilfield (including the marketing rights for entitlement oil) by acquiring 100 per cent equity stake in Shell Exploration and Production Oman from Shell Overseas Holdings," the company said in a regulatory filing.

IOC made the acquisition through its wholly-owned subsidiary, IOCL Singapore Private Limited. The effective date of transaction is January 1, 2017, it added.

The field is operated by Occidental Mukhaizna with 45 per cent stake, while the other partners are Oman Oil Company (20 per cent), Liwa Energy (15 per cent), Total E&P Oman (two per cent) and Partex (Oman) Corporation (1 per cent).

"This is IOC's first producing upstream acquisition in Oman which will further enhance its growth in the upstream sector in the Middle East," he added.