Energy and Natural Resources

Energy has been recognized as one of the most important inputs for growth and development

The energy sector has been a principal driving force for economies around the world. The UAE possesses nearly 10% of the world’s total hydrocarbon reserves; oil and gas revenue will continue to fuel its national economic growth and social infrastructure development for the medium term.
The firm’s clients operating in the energy and natural resources sector (power and utilities, oil and gas and industrial markets) are among the biggest players in the UAE’s economy today.

We help clarify the issues and enhance your competitive advantage, supporting you through various challenges. With a dynamic portfolio, our team helps clients realize their potential. Our services are grounded in our clients’ perspectives. We look at industry challenges from multiple angles, pooling our knowledge to develop holistic services that fit the complexities of an ever-changing business environment.

Key Success Stories

Capital Market Readiness

The firm’s client, a major oil and gas entity operating in the Sultanate of Oman was engaging the global markets and potential investors to raise capital/debt.
Our team assisted the client on meeting the financial reporting requirements i.e. pro-forma financial statements, analyzing the capital/debt structures, technical accounting and reporting nuances, reviewing business plan assumptions to confirm compliance with IFRS and identifying the impact of IFRS 9, 15 and 16

Our team helped the client evaluate and conclude on the ideal debt/capital raising structure and have carved-out financial statements for the key assets.

Asset Monetization Strategy

The firm’s client, an oil and gas giant, wanted to transfer certain pipeline assets into the newly created subsidiary as part of its asset monetization strategy.
The client intended to sell a 40% stake in its subsidiary to an external investor. The client requested KPMG assist with this proposed transaction.

Our team designed the transaction structure (introduction of dividend blockers/variability in returns, etc.) and suggested other financial reporting issues consequential to the proposed transaction structure.

With our support, the client was successful in implementing a proposed asset monetization strategy by securing external investment of approximately USD 10 billion.