An Omani government-owned oil and gas company has disclosed plans for an initial public offering of its exploration and production division, marking a significant step towards privatization in the sultanate. The company, known as OQ and previously Oman Oil Co., will offer up to 25% of shares in its exploration and production arm. While specific financial details were not revealed in the announcement, sources familiar with the matter estimate the company’s overall value at approximately $8 billion, with the stake for sale valued at around $2 billion.
OQ’s decision to go public follows similar moves by industry giants such as Saudi Aramco and Abu Dhabi National Oil Co., indicating a growing trend of state-owned oil companies turning to public markets to raise capital. The IPO could potentially inject vitality into the Muscat Stock Exchange, which has historically been considered one of the quieter markets in the Gulf region. OQ’s CEO, Ashraf Hamed Al Mamari, emphasized the company’s commitment to driving growth opportunities for both the business and Oman as a whole through this strategic move.
The listing of OQ’s exploration and production division is scheduled to occur in October, pending regulatory approvals. The company has outlined plans to issue dividends totaling $150 million for the first two quarters post-IPO, with an annual dividend target of $600 million, in addition to performance-related dividends. Established in 2009, OQ ranks as the third-largest oil industry entity in Oman after state-owned Petroleum Development Oman and U.S.-based Occidental Petroleum.
Oman, located on the eastern edge of the Arabian Peninsula and a member of the OPEC+ coalition, is a key oil producer generating approximately 1 million barrels per day, with China as a primary importer of its crude oil. Under the late Sultan Qaboos bin Said, who utilized oil revenues to modernize the nation following a 1970 coup, Oman underwent significant development. After Sultan Qaboos’ passing in January 2020, his successor Sultan Haitham bin Tariq has focused on strengthening Oman’s financial stability while maintaining its diplomatic role as a mediator between Iran and Western nations.