Bloomberg/Christopher Pikeby Kudakwashe Muzoriwa
Oman oil minister said that the Sultanate is planning to list between 20 and 25 per cent of state-backed Oman Oil Company next year, reported Reuters.
The listing would become the second national oil company in the Arabian Gulf to raise cash this way following Saudi Aramco’s planned initial public offering later this month to help diversify the economy away from oil.
The Sultanate is trying to raise funds from asset sales because lower oil prices have led it to pile up debt over the past few years.
Mohammed al-Rumhi, Oman’s Oil Minister said that financial advisers for the deal had already been assigned, adding that the government could also consider inviting strategic partners to invest in the company alongside the IPO process.
Al-Rumhi said that a number of options were being considered, including an initial private placement of shares ahead of any listing process and a potential listing on an international market.
In a report, S&P stated that from 2020 Oman’s crude oil production will gradually increase to hit 1.1 million barrels per day (bpd) by 2022, from around 0.97 million bpd in 2019.