Page 9 - MEOG Week 27 2021

MEOG PERFORMANCE MEOG

Iran pushes for oil export

boost as ‘quickly as possible’

IRAN IRANIAN Oil Minister Bijan Namdar Zan- measures” to ensure it can raise crude produc-
ganeh as said that Iran would return to the mar- tion in a “short period of time” if US sanctions
kets “as quickly as possible” when US sanctions are removed from Iran’s exports.
were lifted, regardless of OPEC’s position on the Zangeneh repeated calls that the country can
country’s re-entry to the international oil mar- boost its production to 6mn b/d as part of efforts
kets, NIPNA reported on July 5. to boost exports to international markets with-
The 18th meeting of oil and energy ministers out specifying the country has these sitting in
of member and non-member producers of the tankers or on land.
Organization of the Petroleum Exporting Coun- The OPEC+ members are scheduled to meet
tries (OPEC) is ongoing this week on line with again through video-conferencing on Monday,
the Saudi Arabian representative to the group July 5.
praising his Iranian counterparts efforts during Iran has been exempt from OPEC quotas
his tenure on July 4. placed in recent years due to US sanctions on the
After the the latest session Zanganeh said country, but the prospect of a glut of Iranian oil
to the reporters that at the meeting, he had on the global markets could sink prices for Brent
announced that whenever the sanctions were and WTI, among others.
lifted, Iran would return to the market and reach “Returning to the market and regaining mar-
at least the production prior to the sanctions in ket share isn’t a difficult task, though there will be
the shortest possible time a lot of pressure on the oil ministry and the next
Zangeneh said that the country has “several oil minister,” he said.™

FINANCE & INVESTMENT

Oman’s OQ considers

selling drilling arm

OMAN OMANI NOC OQ is reported to be considering reserves held in Block 6, making it the Middle
the sale of its Abraj Energy Services drilling unit East’s first reserves-backed raise.
as part of efforts to aid the sultanate’s economic An investors’ note showed that OQ had hired
recovery from the coronavirus (COVID-19) eight banks to work on a seven-year, dollar-de-
pandemic. nominated bond. Calls were due to begin shortly
Sources were quoted by Reuters as saying that after with Citi, HSBC, JPMorgan, First Abu
the potential sale is part of OQ’s broader divest- Dhabi Bank, MUFG, Natixis, SMBC Nikko and
ment plans. Societe Generale for a “benchmark” bond issu-
The sources said that plans were in their ance, which is expected to be at least $500mn.
infancy, with one source saying that OQ – for- Following the news, Fitch Ratings assigned
merly Oman Oil Co. (OOC) – may decide to the proposed Global Medium Term Note an
carry out only a partial divestment by floating unsecured BB-(EXP) rating in line with OQ’s
the company on the local stock exchange. BB- long-term issuer default rating (IDR).
The partial or complete sale of Abraj has been It added that “the negative outlook on OQ’s
mooted by Muscat since 2015 and has been rating mirrors that on Oman’s rating”.
repeatedly postponed pending an upturn in the Abraj’s adjusted EBITDA for 2020 was
upstream oil industry. The firm was created in around $90mn, according to OQ, which has
2006 and owns 13 land rigs. described the drilling arm as a non-core asset.
Muscat is understood to have been advised The move comes as Muscat prepares to issue
on the process by JP Morgan Chase & Co. and an estimated $3bn worth of bonds through the
EDO is expected to go to market during the next newly formed state firm Energy Development
few months with the $3bn target based on the Oman (EDO) (see next story).™

Week 27 07•July•2021 www. NEWSBASE .com P9