Abraj Energy Services Expands with $104 Million Islamic Financing Arrangement

Abraj Energy Services Expands with $104 Million Islamic Financing Arrangement

By Staff Writer, 17 June 2024

Abraj Energy Services, a company partly owned by Oman's state energy firm OQ, has secured a significant Islamic financing agreement amounting to 40 million Omani rials ($104 million) with Alizz Islamic Bank. This Sharia-compliant facility, as announced by the Muscat Stock Exchange-listed oil and gas provider on Monday, allocates 30 million rials for financing Kuwaiti rigs and the remaining 10 million rials for non-funded working capital needs.

The financing initiative marks a strategic move for Abraj Energy Services, aiming to reduce its reliance on conventional debt by embracing Shariah-compliant financial solutions, according to the company's statement. This step underscores its commitment to aligning its financial practices with Islamic principles.

In a related development reported by Reuters in February 2023, Abraj Energy Services entered into a five-year partnership agreement with Kuwait Gulf Oil Company and Saudi Arabian Chevron. This partnership is geared towards oil extraction and drilling operations in Kuwait, particularly in the Wafra oilfield, where Abraj plans to construct three drilling platforms.

The new financing facility with Alizz Islamic Bank is expected to bolster Abraj Energy Services' operational capabilities and support its strategic ventures in the region's oil and gas sector.

Source: Seban Scaria / Zawya

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