Ipo-bound Abraj, EDO sign deal for oil and gas services
Oman's largest drilling contractor Abraj Energy Services – which plans to go public soon – has signed a memorandum of understanding (MOU) with Energy Development Oman (EDO) to develop services related to oil and gas extraction operations.
The partnership will see Abraj provide an expanded range of services to EDO'S affiliates, including Petroleum Development Oman (PDO), further strengthening the long-standing relationship between the two entities.
The agreement was signed by Eng Saif Said al Hamhami, CEO of Abraj Energy Services and Eng Mazin Rashid al Lamki, CEO of EDO, according to an Oman News Agency report.
With the aim to ensure the long-term sustainable security and supply of energy-related services in Oman, the collaboration serves to boost the contribution of national drilling champion Abraj to the country’s oilfield services sector, as well as encouraging the implementation of alternative energy solutions.
Abraj – which is an indirectly wholly-owned subsidiary of Oman’s global integrated energy group OQ – recently announced its intention to proceed with an initial public offering (IPO) in February and listing on the Muscat Stock Exchange in March.
OQ (the selling shareholder)
intends to offer up to 49 per cent of Abraj’s share capital in the IPO. The offer represents the divestment of shares currently held by the selling shareholder. After the IPO, a minimum of 51 per cent shareholding will continue to be indirectly held by OQ.
Abraj’s listing on the Muscat Stock Exchange will provide investors with access to one of Oman’s leading onshore oil and
gas field services providers, with a wide service offering including drilling, workover and well services.
As per Abraj's latest announcement, the subscription period for its proposed IPO is expected to commence in February, after receiving the required approval from the Capital Market Authority.
Abraj is the leading and largest drilling contractor in
Oman by contracted operating drilling rigs, with 29 per cent market share. The company operates one of the youngest rig fleets in the MENA region with a sizeable rig fleet comprising 25 drilling rigs and 5 workover rigs.
Abraj is a regional pioneer in using integrated hydraulic fracturing services to further the development of unconventional deep tight oil and gas in Oman.