Oman’s OQ invites banks to pitch for gas pipeline network IPO: sources

DUBAI: Oman’s state energy company OQ is considering an initial public offering of its gas pipelines network, four sources with knowledge of the matter told Reuters.

The company has invited local and international banks to pitch for roles in a potential offering, according to the sources, who declined to be named as the matter is not public.

OQ did not immediately respond to a request for comment when contacted by Reuters on Monday.

The company is considering local listings for some of its downstream and upstream assets but has no plan to float the parent company at present, a senior executive told Reuters in November.

Oman follows Abu Dhabi and Saudi Arabia in looking at sales of stakes in energy assets, capitalizing on a rebound in crude prices to attract foreign investors.

Oman aims to list 35 state-owned enterprises in the next five years and plans to take one or two oil companies public this year, the CEO of the Muscat Stock Exchange told CNBC Arabia in March.

Oman, which according to S&P gets 75 percent of fiscal receipts from hydrocarbon products, has introduced some reforms to diversify revenues, including introducing a 5 percent value-added tax last year.

The reforms and a shake-up of state entities are being driven by Sultan Haitham bin Tariq Al-Said, who took the throne in early 2020 after the death of Sultan Qaboos, who ruled the small oil producer for nearly five decades.