Oman state energy firm OQ said to mull sale of drilling business

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, sources said.

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.

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

Last year it launched a new fiscal plan to wean itself off its dependence on revenues from crude.