Page 10 - MEOG Week 04 2023

MEOG FINANCE & INVESTMENT MEOG

OQ outlines plans for Abraj IPO

OMAN OMANI state oil firm OQ this week disclosed divestment plans. Sources said that plans were
its plans to sell up to 49% of its Abraj Energy in their infancy, with one of them saying that
Services drilling arm in an initial public offer- OQ – formerly Oman Oil Co. (OOC) – may
ing (IPO) on the Muscat Securities Market decide to carry out only a partial divestment
(MSX). by floating the company on the local stock
Documents posted on the Abraj website exchange. The partial or complete sale of Abraj
said that the subscription period would begin has been mooted by Muscat since 2015 and has
in February ahead of a March listing, with been repeatedly postponed pending an upturn
Bloomberg reporting in September that such a in the upstream oil industry. The firm was cre-
move could raise up to $500mn. ated in 2006 and owns 13 land rigs.
Up to 85% of the shares listed will be offered Following the path now trodden by both
to institutional investors and will be made Abu Dhabi National Oil Co. (ADNOC) and
available to Omani and international investors, Saudi Aramco, al-Kharusi said that OQ could
excluding those in the US. A minimum of 15% consider various arrangements for its gas net-
will be offered to retail investors. work including stake sales, local listings or leas-
Abraj said that its 2023 dividend would ing. OQ Gas Network (OQGN) is the exclusive
comprise 85% of 2022 profits. operator and owner of Oman’s gas transporta-
The company’s CEO Saif Al Hamhami said: tion system and has the exclusive concession to
“We believe the company’s future is very bright, own and operate a system of pipelines, meter-
not least because it is already prequalified in ing, compressor and gas supply stations.
four countries to conduct a range of services, There have been reports that suggest OQGN
setting the stage for international expansion could be next for IPO, targeting a return of
geared towards delivering growth and share- around $800mn tor a minority shareholding.
holder value.” OQ has 10 subsidiaries throughout the oil
Ahli Bank of Oman, EFG Hermes and and gas value chain, with notable examples
National Bank of Oman have been hired as including OQ Chemicals, OQEP, OQ Trading
joint global co-ordinators for the listing. and OQ8, a joint venture with Kuwait Petro-
OQ was reported in July 2021 to be con- leum International (KPI) that is developing the
sidering the sale of Abraj as part of broader greenfield Duqm refinery.™

P10 www. NEWSBASE .com Week 04 25•January•2023