Page 8 - MEOG Week 07 2023

MEOG FINANCE & INVESTMENT MEOG

Key investors lined up to Abraj IPO

OMAN DETAILS have emerged about the investors that not least because it is already prequalified in four
will anchor the listing of Oman’s Abraj Energy countries to conduct a range of services, setting
Services, which is expected to be admitted to the the stage for international expansion geared
local stock exchange following its upcoming ini- towards delivering growth and shareholder
tial public offering (IPO). value.” Ahli Bank of Oman, EFG Hermes and
With 49% of the company – the drilling arm National Bank of Oman have been hired as joint
of state oil firm OQ – set to be listed, the Saudi global co-ordinators for the listing.
Omani Investment Co., a wholly-owned affiliate The partial or complete sale of Abraj has been
of Saudi Arabia’s Public Investment Fund (PIF) mooted by Muscat since 2015 and has been
has committed to acquiring 20% of the shares. repeatedly postponed pending an upturn in the
Oman’s Royal Court Affairs and Schlumberger upstream oil industry. The firm was created in
Oman & Co. will pick up 10%, respectively. 2006 and owns 13 land rigs.
OQ is expecting to raise up to $244mn Following the path now trodden by both Abu
from the share sale with shares seen selling for Dhabi National Oil Co. (ADNOC) and Saudi
OMR0.24-0.25 apiece. This would give Abraj Aramco, OQ’s CEO of commercial ad down-
a market capitalisation of just under $500mn, stream Hilal al-Kharusi said last year that the
though an update provided to Muscat Daily this company could consider various arrangements
week said that the share price will be announced for its gas network including stake sales, local
around March 6, with the listing on the Muscat listings or leasing. OQ Gas Network (OQGN) is
Securities Exchange (MSX) to take place roughly the exclusive operator and owner of Oman’s gas
a week later. Up to 85% of the shares listed will transportation system and has the exclusive con-
be offered to institutional investors and will be cession to own and operate a system of pipelines,
made available to Omani and international metering, compressor and gas supply stations.
investors, excluding those in the US. A mini- OQ has 10 subsidiaries throughout the oil
mum of 15% will be offered to retail investors. and gas value chain, with notable examples
In late January, Abraj said that its 2023 divi- including OQ Chemicals, OQEP, OQ Trading
dend would comprise 85% of 2022 profits. and OQ8, a joint venture with Kuwait Petroleum
The company’s CEO Saif Al Hamhami said: International (KPI) that is developing the green-
“We believe the company’s future is very bright, field Duqm refinery. ™

POLICY & SECURITY
Talks continue between Baghdad and Erbil

IRAQ A high-level delegation from the Kurdistan Barzani said: “We felt that there is a positive
Regional Government (KRG) met with coun- atmosphere and a good opportunity to resolve
terparts from the Iraqi Ministry of Oil (MoO) issues with the federal government on the basis
as they seek to reach a breakthrough on mutual of the constitution and within the framework of
energy issues. the political parties’ agreement to form the gov-
A KRG statement over the weekend said that ernment and the ministerial agenda approved by
the Kurdish delegation was led by the region’s the Iraqi Council of Ministers.”
Minister of Finance and Economy, Awat Janab The parties discussed topics including the
Nuri and also included Minister of Electricity KRG’s share of the 2023 federal budget and the
Kamal Mohammed; Umed Sabah, President drafting of an Iraqi oil and gas law.
of the Diwan of the Council of Ministers; KRG A budget was never passed for 2022, with
Spokesman Jutiar Adel; and Fares Isa, the KRG’s that for 2021 having also significantly overshot
representative to Baghdad. Discussions focused its deadline. Meanwhile, Kurdish leaders said
on a draft federal oil and gas law and other out- they hoped the new regime in Baghdad could
standing energy-related issues between Erbil and help expedite the signing of a new oil and gas
Baghdad. Nuri said that Erbil hoped: “to reach an law after the previous one was torn up by the
agreement with the federal government within Supreme Court last February.
the framework of the constitution that serves the At that time, Iraq’s Supreme Court ruled that
interests of all our citizens.” the KRG should deliver the “entire production
Last month, Kurdish Prime Minister Mas- of oilfields in Kurdistan” to the state oil marketer
rour Barzani said that a set of “preliminary Somo. It added that all the KRG’s contracts with
understandings” had been agreed that ‘resolve’ international oil companies and foreign govern-
issues including those pertaining to the oil ments covering exploration, production, exports
industry when he led a Kurdish delegation’s visit and sales were invalid and that details should be
to Baghdad. The group met with Iraqi Prime provided to the Ministry of Oil (MoO) in Bagh-
Minister Mohammed Shia’ al-Sudani. dad for auditing.™

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