Arab News, Monday, Feb 27, 2023 | Sha'ban 07, 1444
Oman’s Abraj Energy forms strategic partnership to explore oil in Kuwait
Oman,Kuwait :
Oman’s oil and gas drilling services firm Abraj
Energy is set to explore oil in Kuwait as the company signed a new strategic
partnership agreement with Kuwaiti national oil company Kuwait Gulf Oil Co. and
Saudi Arabian-based chemical plant Saudi Chevron Co., according to a statement.
Under the terms of the agreement — which will
cover a period of five years — Abraj Energy will look into ways to extract and
further explore oil in the neighboring country.
The deal will also see Abraj Energy build three
rigs for drilling and services at the Wafra field project in Kuwait, according
to Reuters.
The strategic collaboration comes within the
framework of Abraj Energy’s goal of strengthening the partnership and expanding
its operations in the Middle East and North Africa region.
Last month, the oil and gas drilling services firm
announced plans to list up to 49 percent of its shares on the Muscat Stock
Exchange in March through an initial public offering, according to a company
statement.
The IPO forms part of an exit plan recently
announced by the sovereign wealth fund, the Oman Investment Authority, the state
news agency said. State energy company OQ, the selling shareholder, is wholly
owned by the OIA, which expects to exit eight investments in 2023 to generate
about $1.3 billion.
A diversified oil and gas services firm, Abraj is
the largest drilling contractor in Oman, with a market share of almost 30
percent.
"We believe the company’s future is very bright,
not least because it is already pre-qualified in four countries to conduct a
range of services, setting the stage for international expansion geared towards
delivering growth and shareholder value," Abraj Chief Executive Saif Al Hamhami
said.
Earlier this month, OQ announced its plan to raise
as much as $244 million from an initial public offering of its oil and gas
drilling business, Abraj Energy Services, according to a statement.
Established in 2006, Abraj Energy is a wholly
owned subsidiary of OQ, Oman’s integrated energy company. It has grown to
become Oman’s leading drilling firm, with one of the youngest and most advanced
drilling fleets in the Gulf Cooperation Council.