Oman is trying to raise funds from the back of its largest oil block, as the cash-strapped Gulf nation is searching for new ways to ease its budget deficit and sustain a reeling economy.

The Sultanate plans to move its 60 per cent stake in Block 6, which has a production capacity of 650,000 barrels per day from Petroleum Development Oman to a new firm, according to three people who are familiar with the matter. The business would then access foreign financial markets, allowing Oman to collect debt without putting it on government books, they said, asking not to be named because they are not permitted to talk to the media.

The new firm could be seeking to sell about $3 billion of bonds in the first half of next year, one of the people said. JPMorgan Chase & Co. is offering advice to the government, the individual said.

PDO and JPMorgan refused to comment. Spokesmen for Oman's ministries of energy and finance did not respond immediately to e-mails asking for comments.