Oman state energy firm OQ may sell drilling business, sources say

DUBAI, July 5 (Reuters) – Oman state energy company OQ is considering selling its drilling unit Abraj Energy Services, sources said, as the Gulf nation seeks to shore up its finances that have been hit by the coronavirus pandemic and last year’s oil price plunge.

The potential sale of the midstream firm is part of a broader divestment plan by OQ, three sources familiar with the matter said, declining to be named as the matter is not public.

Deliberations were at an early stage and OQ could decide to make only a partial exit by floating the company on the Omani stock exchange, one of the sources said.

OQ did not immediately respond to a request for comment.

Abraj, which was originally slated in 2015 for a partial divestment via an initial public offering (IPO), also did not respond to a request for comment.

Oman, rated sub-investment grade by all major credit rating agencies, has struggled in recent years to tame widening deficits and faces large debt…

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