Oman seeks to raise billions by leveraging biggest oil block

Oman seeks to raise billions by leveraging biggest oil block

Oman is seeking to raise money off the back of its largest oil block, as the cash-strapped Gulf nation looks for new ways to tame its budget deficit and steady a reeling economy.

The sultanate plans to transfer its 60 per cent stake in Block 6, which has a production capacity of 650,000 barrels a day, from Petroleum Development Oman to a new company, according to three people familiar with the matter.

The company would then tap international financial markets, allowing Oman to raise debt without putting it on the government's books, they said, asking not to be identified because they're not authorised to speak to media.

The new firm may try to sell around $3bn of bonds in the first half of next year, one of the people said. JPMorgan Chase &