Oman is seeking to raise money off the back of its largest oil block, as the cash-strapped Gulf nation looks for new ways to tame its budget deficit and steady a reeling economy.
The sultanate is transferring its 60% stake in Block 6, which has a production capacity of 650,000 barrels a day, from Petroleum Development Oman to a new company, according to three people familiar with the matter. The company would then tap international financial markets, allowing Oman to raise debt without putting it on the government’s books, they said, asking not to be identified because they’re not authorized to speak to media.
The new firm may try to sell around $3 billion of bonds in the first half of next year, one of the people said. JPMorgan Chase & Co. is advising the government, the person said.
PDO and JPMorgan declined to comment. Spokespeople for Oman’s ministries of energy and finance didn’t immediately respond to emails requesting comment.
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