#Oman Is Said to Consider Selling Stake in $8 Billion Gas Fields - Bloomberg

Oman Is Said to Consider Selling Stake in $8 Billion Gas Fields - Bloomberg

Oman is looking to sell a stake in natural gas assets valued at about $8 billion, according to people familiar with the plan, as the sultanate seeks to raise cash to shore up its state finances and fund investments.

State-owned firm Energy Development Oman SAOC is seeking partners for a minority stake in the fields contained in Block 6, which also holds the country’s most prized oil assets, the people said, asking not to be named because the plans are private. Besides bringing in funds for Oman, a sale would also help spread the billions of dollars of costs needed to develop and operate the fields, which consultant Wood Mackenzie Ltd. values at about $8.2 billion.

A successful transaction would add to a string of asset sales in Oman aimed at bolstering public finances which have long been among the weakest in the Arab Gulf region. The drive has resulted in a flurry of IPOs of state-owned entities as it also looks to finance projects aimed at diversifying the economy away from oil.

EDO didn’t respond to an email seeking comment. Talks are ongoing for the sale, and the plans could still change, people familiar with the move said.

The prolific Block 6 was spun off from Oman’s biggest oil producer, Petroleum Development Oman, in 2020 into the newly formed EDO. The company owns 60% of the block’s oil and 100% of the gas concession. The government had intended to issue bonds through EDO, but those plans were delayed several times because of weak global financial markets.

“Block 6 is Oman’s largest and most-valuable oil and gas asset,” said Dalia Salem, a senior research analyst at Wood Mackenzie. It contains around 10.7 trillion cubic feet of proved and probable non-associated gas reserves and produces more than 2 billion cubic feet a day, she said.

Oil generates four times more revenue for Oman than gas but the balance is shifting as investment has trended toward gas projects in response to growing global demand for the fuel.

TotalEnergies SE and Oman’s OQ SAOC are building a facility to supply LNG to ships while the government has approached international energy majors such as BP and Shell Plc to invest in a new LNG train at Qalhat that will increase the country’s export capacity by 25%.

#AbuDhabi’s IHC, BlackRock Start $1 Billion Reinsurance Firm - Bloomberg

Abu Dhabi’s IHC, BlackRock Start $1 Billion Reinsurance Firm - Bloomberg

International Holding Co., Abu Dhabi’s largest listed company that’s overseen by a key member of the emirate’s royal family, is setting up a $1 billion reinsurance venture with BlackRock Inc.

The yet-to-be-named firm will launch with more than $1 billion in initial equity commitments and aims to manage $10 billion in liabilities, backed by partnerships with BlackRock and Abu Dhabi-based asset manager Lunate, according to a statement.

Headquartered in Abu Dhabi’s financial free zone, ADGM, the firm will be chaired by Sultan Al Jaber — the United Arab Emirates’ minister for industry and advanced technology. It will be led by Mark Wilson, the former chief executive officer of Aviva Plc and AIA Group Limited.

BlackRock will provide an initial minority investment and will support the venture with insurance asset management, advisory services and technology. Lunate will serve as a partner, offering its experience across public and private markets.

The new firm will make use of AI as a core part of the strategy, enhancing underwriting capabilities by improving the quality and speed of risk assessments.

BlackRock received a commercial license to operate in Abu Dhabi last year, and the latest deal deepens its ties to the emirate.

The firm is partnering with MGX on a partnership that aims to build $30 billion worth of data centers and other artificial intelligence infrastructure. Lunate, meanwhile, acquired a stake in ADNOC Oil Pipelines from BlackRock and KKR & Co. last year.

IHC, MGX, and Lunate are part of a vast empire overseen by Sheikh Tahnoon bin Zayed Al Nahyan — the UAE’s national security adviser and a brother to its president.

The UAE, of which Abu Dhabi is the capital, has been pushing to diversify away from its dependence on oil. It’s expanding into areas like technology, finance and health care.

Home to three sovereign wealth funds that control close to $1.7 trillion in assets, Abu Dhabi has become a magnet for international investors. At the same time, the UAE has pushed global financial giants to set up local partnerships to help build the domestic economy.

#UAE markets down ahead of US-China trade talks | Reuters

UAE markets down ahead of US-China trade talks | Reuters

Stock markets in United Arab Emirates closed slightly lower on Friday, as investors awaited the outcome of U.S.-China trade talks this weekend.

Abu Dhabi's benchmark index (.FTFADGI), opens new tab settled 0.1% down after hitting nearly three-month high on May 6.

Abu Dhabi's biggest developer Aldar Properties (ALDAR.AD), opens new tab dropped 2.1%, while UAE's largest lender First Abu Dhabi Bank slipped 0.8%.

However, Maritime services and free zone operator Abu Dhabi Ports Company (ADPORTS.AD), opens new tab jumped 1.3% after the firm reported a 11% increase in its Q1 net profit to 347.7 million dirhams ($94.67 million).

Separately, Abu Dhabi's largest listed company IHC (IHC.AD), opens new tab said on Friday it plans to set up a new $1 billion artificial intelligence-driven reinsurance platform with BlackRock.

IHC shares closed 0.2% down.

Dubai's main market index (.DFMGI), opens new tab edged down 0.03%, pressured by a 2.1% decrease in top lender Emirates NBD Bank (ENBD.DU), opens new tab and 2.4% loss in Commercial Bank of Dubai (CBD.DU), opens new tab.

Among the losers, blue-chip developer Emaar Properties (EMAR.DU), opens new tab fell 0.7% after the developer reported Q1 net profit of 3.71 billion dirhams ($1.01 billion) that missed the analysts' estimate of 4 billion dirhams.

Oil prices, a key contributor to the Gulf's economy - rose more than 1% on Friday as trade tensions between top oil consumers China and the United States showed signs of easing and Britain announced its own U.S. trade deal.

Brent Crude was up 1.97% to $64.08 a barrel by 1205 GMT.

Abu Dhabi and Dubai indices logged 0.5% and 0.4% weekly gains respectively - LSEG data.