State Grid International Development (SGID), a wholly owned subsidiary of the State Grid Corporation of China (SGCC), has agreed with Oman’s state-owned electricity utility Nama Holding to buy 49% of Oman Electricity Transmission Company (OETC). The transaction is subject to regulatory approvals and is expected to close in early 2020.
The OETC transaction is conditional only upon the approval of the Authority for Electricity Regulation and completion (subject to satisfaction of this previous condition) is expected to occur in early 2020.
In October 2018, Nama Holding launched a privatization programme for its distribution and transmission subsidiaries. The programme included a 49% stake in Oman Electricity Transmission Company and up to 70% of Muscat Electricity Distribution Company. Nama Holding also plans to sell stakes of up to 70% in three other subsidiaries (Majan Electricity Distribution Company, Mazoon Electricity Distribution Company and Dhofar Power Company) by 2020.
In December 2018, State-owned company Oman Oil announced the sale of 20%-25% stake in an initial public offering (IPO) by the end of 2020. Oman aims at using the receipt of the sale to reduce its fiscal deficit and finance the diversification of its economy.
According to IMF data, Oman’s fiscal deficit reached 13.9% of GDP in 2017, with its public debt increasing by 14.4 percentage points to 46.9% of GDP. The same year, hydrocarbons accounted for 74% of public revenue and 58% of export receipts. While, the Oman’s oil production stood at 0.96 mb/d in 2018, the IMF forecasts it will rise 16.7% to 1.12 mb/d in 2021.