Oman Oil Co., the Sultanate’s state-owned oil producer, is seeking advice from banks on strategic options for its business, Bloomberg reports quoting people familiar with the matter, in a move similar to oil giant Saudi Aramco’s decision to sell 5% stake to raise capital from the market.
Oman Oil has reportedly asked international investment banks to pitch for roles to advise on plans to restructure its portfolio, the sources told Bloomberg, requesting anonymity. Oman Oil may sell assets or list some of its portfolio businesses on the stock market, the people said.
Governments in the GCC, are restructuring national oil companies – selling shares, merging units and cutting costs – in an era of below oil prices.
Aramco is planning an initial public offering, which the government claims may raise about $100bn. Qatar Petroleum is merging its two liquefied natural gas divisions, Qatargas and RasGas. The Abu Dhabi National Oil Company too has integrated a number of its subsidiary companies to optimise operations.
Oman is expanding its energy industry and developing new sources of revenue, amid a drop in oil prices that has hurt government coffers. It’s building a port and metals factory in the Arabian Sea town of Duqm.
Oman Oil holds stakes in Hungary’s Mol Nyrt, Oman Gas Co, Oiltanking Odfjell Terminals & Co and the Musandam power plant, among a number of other businesses. The company agreed to acquire Oxea from from Advent International Corp in 2013 to expand beyond refining into chemicals and ingredients for manufacturing and consumer goods.
