Qatar’s national oil company has dropped out of a group of state-backed investors seeking to buy a stake in Occidental Petroleum Corp.’s Middle East business amid a political dispute in the region, people with knowledge of the matter said.
Blazing gas flares 70 meters high brighten the night sky above Qatar’s Ras Laffan Industrial City. The 295-square-kilometer complex houses the world’s largest assemblage of liquefied natural gas plants and the biggest port for LNG exports on the globe. Ras Laffan chills to a fluid more gas in a year than Canada consumes and then ships it to run electric plants and warm homes from Tokyo to Buenos Aires. The gas facilities within its grounds produce almost a third of the world’s LNG exports, Bloomberg Markets will report in its May issue.
Occidental Petroleum Corp., seeking to raise as much as $8 billion by selling a stake in its Middle East business, said a political dispute in the region is complicating plans to sell to a single investor group.
Qatar Petroleum and Just Falafel are leading companies in the Persian Gulf out of a four-year drought in initial public offerings, tapping demand that pushed Dubai’s equity index up the most in 2013 among major markets.
Morgan Stanley, owner of the world’s biggest brokerage, is predicting the return of initial public offerings worth more than $1 billion in the Persian Gulf after asset values and stock markets rallied.
Qatar Petroleum, the Gulf country’s state-run energy company, plans to raise about $3 billion from project financing next quarter to develop its Barzan natural-gas facility, two bankers familiar with the transaction said.