Oman Oil Company intends to sell its German chemical unit, in an effort to create a balance in the budget.
According to Al Arabiya, informed sources told Bloomberg that the Oman Oil Company spoke to potential consultants who will study the available options, and the value of this German unit was estimated at about 3 billion dollars.
The sources added that deliberations are ongoing, and there is no certainty that it will lead to a sale, while a spokesperson for OQ Chemicals directed inquiries to the parent company.
Oman has sought to use its energy assets to raise funds and reduce budget deficits that have soared with the spread of the COVID-19 pandemic, which has led to a decline in oil prices and tourism.
Bloomberg sources said in April that the company was considering the potential sale of a stake in integrated energy company OQ or one of its affiliates.
Oman Oil Company was formed through the merger of Oman Oil Company with several companies, including the state-owned Oman Gas Company, the refinery group Orpic and Oxia.
Oman agreed to buy Oxea from private equity firm Advent International in 2013 for 1.8 billion euros ($2.1 billion), as it sought to capitalize on growing demand for the material. Oxia-based chemicals, as the company's products are used in paints, cosmetics, pharmaceuticals, and artificial flavors.
OQ Chemicals employs more than 1,400 people in Germany, as well as in China, the Netherlands and the United States, according to its website.
