Oman’s Abraj inks oil drilling deal with Chevron, Kuwait Gulf Oil Company

Oman’s Abraj Energy Services has expanded its regional footprint by signing a five-year ‘strategic partnership deal’ with Kuwait Gulf Oil Company and Saudi Arabian Chevron to extract and drill for oil in Kuwait.

Under the deal, Abraj will construct three drilling platforms in the Wafra oilfield in the southern part of Kuwait.

“Abraj Energy Services is uniquely poised for this opportunity as it owns the most modern and advanced drilling fleets in the Middle East and North Africa region. Consisting of 25 drilling rigs and five well maintenance rigs that operate with the latest technology,” said Saif Al Hamhami, CEO of Abraj Energy Services.

#Abraj_Energy_Services inked its 1st global strategic partnership with Saudi Arabian Chevron and Kuwait Gulf Oil Company in the Wafra Oil Field to deliver three rigs and drilling services for five years contract.

Read more: ?https://t.co/fkYOOVZerr pic.twitter.com/9CBLxaedal

— Abraj Energy Services (@abraj_energy) February 25, 2023

The oil and gas drilling firm is pre-qualified to provide various services in Kuwait, Saudi Arabia and Algeria, where its rigging fleet is linked to long-term contracts with leading national and international companies in the field of exploration and production.

Abraj Energy IPO

Meanwhile, Oman’s state-owned energy company OQ plans to raise as much as $244m from the initial public offering (IPO) of Abraj Energy on the Muscat Stock Exchange.

Saudi Omani Investment Company, a wholly-owned entity of Saudi Arabia’s Public Investment Fund together with Oman’s Royal Court Affairs and Schlumberger Oman are anchor investors in the IPO with a total commitment of around $98m, which is equivalent to 40% of the offering.

Read: Oman oil-drilling IPO draws Saudi wealth fund as anchor investor

OQ is selling a 49 per cent stake, equivalent to 377 million shares of Abraj at 242 baizas and 249 baizas apiece, which implies a market capitalisation of around $484m and $498m. Abraj’s IPO is set to be Oman’s biggest public offering since 2010 when Ooredoo Oman, previously Nawras, raised $475m.

Abraj Energy said it is taking orders from institutional investors until March 2, while bids for retail buyers are open until March 1 and the final pricing will be announced on March 6, with trading in the shares scheduled for March 14.

The company intends to pay a dividend this year for 2022 of OMR15.4m. In 2024 and 2025 it will pay 85 per cent of the previous year’s net profit in dividends or increase the payout by 6 per cent, depending on what’s higher.

The listing is part of the exit plan unveiled by the Oman Investment Authority to facilitate investment opportunities for local and foreign investors in line with the Sultanate’s Vision 2040. Oman is joining its GCC neighbours, especially the UAE and Saudi Arabia, in selling assets to fund the diversification of their economies and open up their stock markets to more international investors.

Also read: ADNOC Gas eyes $2bn from world’s biggest IPO this year