RIYADH: 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.