Letter from the Middle East: Selling off the family silver
Auctioning minority stakes in NOCs’ assets may fill short-term budget holes, but they are no guarantee of long-term change
Gulf countries may appear to be reaching for the Thatcherite handbook in pursuing part-privatisations and attracting outside capital into their oil industries at a time of fiscal stringency and growing pressures for diversification. But, on a closer look, raising funds and driving limited organisational improvements have so far been more prominent than any deep transformation. Leading the way Abu Dhabi’s Adnoc has blazed the trail, selling over the past three years minority stakes in its refining subsidiary, drilling company and oil and gas pipeline networks, as well as raising a $3bn bond for its oil export pipeline. It has also formed joint ventures with international partners in fertilise
Also in this section
17 April 2024
Uzbekistan and Kazakhstan provide opportunities after Europe turns it back, while also offering another gateway to China
16 April 2024
Commentators need to shake off the myths of the past, with rising oil prices a boon for US economy
15 April 2024
Though hampered by methane concerns, US LNG has a crucial role to play for European and Asian energy security, US economic needs and the energy transition drive
12 April 2024
Iran has announced multibillion dollar spending programmes aimed at domestic companies, inspired by recent export success