Oman working with McKinsey to integrate refining, petrochem assets

Oman is working with consultancy Mckinsey and Co to integrate its refining and petrochemical industries into one entity, a senior Omani official and a financial source familiar with the matter said.

“The work is being carried out by McKinsey. It is not finished yet,” the senior official told Reuters on condition of anonymity.

In recent years, Gulf countries have looked at ways to shake-up their oil firms, including privatisations, to make them more efficient during a period of low oil prices.

Saudi Arabia is seeking a public listing for its flagship oil company Saudi Aramco, while Abu Dhabi National Oil Co has embarked on a plan to privatise its services business and has signed deals with global partners on upstream projects.

Read: Audit finds Saudi Aramco has larger oil reserves than expected

Oil prices have recently recovered to their highest level since late 2014 following output cuts by major producers.

McKinsey could not immediately be reached for a comment.

Oman has been considering privatisations of a wide range of state firms for several years.

Last year, it said it planned to sell shares in some state-owned downstream energy companies to the public, partly to raise money as low oil prices pressure its finances.

Read: Oman Oil upstream unit looks to borrow at least $1bn

With smaller oil and financial reserves than its wealthy neighbors, Oman has spent heavily on industrial and infrastructure projects to diversify its economy beyond oil.