Oman is seeking to promote a stake in pure fuel belongings valued at about $8 billion, based on individuals aware of the plan, because the sultanate seeks to boost money to shore up its state funds and fund investments.
State-owned agency Vitality Growth Oman SAOC is in search of companions for a minority stake within the fields contained in Block 6, which additionally holds the nation’s most prized oil belongings, the individuals stated, asking to not be named as a result of the plans are personal. Moreover bringing in funds for Oman, a sale would additionally assist unfold the billions of {dollars} of prices wanted to develop and function the fields, which advisor Wooden Mackenzie Ltd. values at about $8.2 billion.
A profitable transaction would add to a string of asset gross sales in Oman aimed toward bolstering public funds which have lengthy been among the many weakest within the Arab Gulf area. The drive has resulted in a flurry of IPOs of state-owned entities because it additionally appears to be like to finance initiatives aimed toward diversifying the economic system away from oil.
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EDO didn’t reply to an e mail in search of remark. Talks are ongoing for the sale, and the plans may nonetheless change, individuals aware of the transfer stated.
The prolific Block 6 was spun off from Oman’s greatest oil producer, Petroleum Growth Oman, in 2020 into the newly fashioned EDO. The corporate owns 60% of the block’s oil and 100% of the fuel concession. The federal government had meant to concern bonds by way of EDO, however these plans had been delayed a number of occasions due to weak international monetary markets.
“Block 6 is Oman’s largest and most-valuable oil and fuel asset,” stated Dalia Salem, a senior analysis analyst at Wooden Mackenzie. It comprises round 10.7 trillion cubic ft of proved and possible non-associated fuel reserves and produces greater than 2 billion cubic ft a day, she stated.
Oil generates 4 occasions extra income for Oman than fuel however the steadiness is shifting as funding has trended towards fuel initiatives in response to rising international demand for the gas.
TotalEnergies SE and Oman’s OQ SAOC are constructing a facility to provide LNG to ships whereas the federal government has approached worldwide vitality majors comparable to BP and Shell Plc to spend money on a brand new LNG practice at Qalhat that may enhance the nation’s export capability by 25%.
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