CHAN­NELIS­ING GROWTH

Oman Oil Com­pany plans pri­vati­sa­tion of some of its sub­sidiaries, says Eng. Isam Bin Saud Al Zad­jali, CEO, Oman Oil Com­pany at the 1st OOC me­dia gath­er­ing. An OGR Re­port

Oil and Gas - - IN THE NEWS -

Oman Oil Com­pany (OOC), the Govern­ment’s in­vest­ment arm in the en­ergy re­lated sec­tor, has planned to di­vest part of its stake in Block 61 and is look­ing at pri­vati­sa­tion of Abraj En­ergy Ser­vices and a few oth­ers.

The di­vest­ment in Block 61 is among the Group’s ini­tia­tives for pri­vati­sa­tion of some of its sub­sidiaries, Eng. Isam Saud al Zad­jali, Chief Ex­ec­u­tive Of­fi­cer, OOC told re­porters on the side­lines of the OOC’s 1st Me­dia Gath­er­ing held re­cently. The Block 61 com­prises Khaz­zan and Ghazeer gas de­vel­op­ments. OOC, he said is scout­ing for a buyer for 10 per cent of its 40 per cent stake in Block 61. Ad­di­tion­ally, “We are study­ing plans to pri­va­tise one or more com­pa­nies next year,” he added.

The CEO fur­ther said that OOC is look­ing at for­eign in­vest­ments for its fu­ture projects. “We have to think of new projects. We are an in­vest­ment com­pany and so ob­vi­ously fi­nanc­ing is the name of the game,” he said. OOC’s on­go­ing suc­cess in se­cur­ing fund­ing for its var­i­ous projects can be at­trib­uted to the sound fun­da­men­tals of the group, as well as the strong cre­den­tials of the Omani govern­ment, he said.

“We are hon­oured to have suc­cess­fully com­pleted the fi­nanc­ing for projects such as Salalah Am­mo­nia, Salalah LPG, fi­nanc­ing of the pre-ex­port fa­cil­ity of OOCEP and so on. Con­clud­ing the fi­nanc­ing at a level that is sat­is­fac­tory to us is a tes­ta­ment to the hard work that the com­pany has put in but more

im­por­tantly to the ro­bust­ness of the Omani econ­omy, he added.

OOC and its group of com­pa­nies have suc­cess­fully raised fund­ing com­mit­ments of ap­prox­i­mately $11 bn since Jan­uary 2017 de­spite the chal­leng­ing global eco­nomic con­di­tions. This re­flects the trust that fi­nan­cial in­sti­tu­tions have placed on the project and the fi­nanc­ing struc­ture, which is demon­strated by the fact that the lend­ing group com­prises of lo­cal, re­gional as well as in­ter­na­tional lenders, Eng. Isam said.

Three ma­jor projects un­der OOC were recog­nised by ma­jor In­ter­na­tional en­ti­ties for the suc­cess­ful com­ple­tion of cer­tain fi­nanc­ing pa­ram­e­ters. Oman Oil Com­pany Ex­plo­ration Pro­duc­tion (OOCEP), Salalah Methanol Com­pany (SMC), and Salalah LPG col­lec­tively re­ceived five dif­fer­ent awards.

Oman Oil Com­pany Ex­plo­ration Pro­duc­tion (OOCEP), the up­stream ver­ti­cal of OOC group of com­pa­nies se­cured $1 bil­lion in the pre-ex­port fi­nance mar­ket amidst a crit­i­cal pe­riod. OOCEP was awarded by TXF as one of the top ten deals recog­nised for be­ing in­no­va­tive, hav­ing an in­flu­ence on mar­ket trans­ac­tions and trade. OOCEP was awarded the TXF Per­fect 10: Mid­dle East­ern Com­modi­ties Fi­nance Deal of the Year 2017.

Salalah Methanol Com­pany (SMC) suc­cess­fully se­cured a 12-year $728 mil­lion re­course project fi­nance fa­cil­ity from a mix of in­ter­na­tional, re­gional and lo­cal fi­nan­cial in­sti­tu­tions. The fa­cil­ity will be used to re­fi­nance SMC’s ex­ist­ing debt, while the re­main­ing $443 mil­lion to be al­lo­cated to the de­vel­op­ment of the am­mo­nia plant. This achieve­ment was recog­nised, where the Com­pany’s fi­nanc­ing trans­ac­tion won three award­sPetchem Deal of the Year 2017 in the Mid­dle East and Africa by Project Fi­nance In­ter­na­tional (PFI), the Petro­chem­i­cals Deal of the Year 2017 in MENA by IJGlobal and Petro­chem­i­cals Project Fi­nanc­ing of the Year 2017 from TXF.

Oman Gas Com­pany (OGC) se­cured par­tial fi­nanc­ing of $640 mil­lion for the Liq­ue­fied Pe­tro­leum Gas (LPG) project in Salalah, with sev­eral in­ter­na­tional banks and ex­port credit agen­cies. This project falls in line with the over­ar­ch­ing mid­stream strate­gic vi­sion of the com­pany to be­come an in­ter­na­tional

LPG and con­den­sate ex­port hub. Salalah LPG was awarded the Mid­stream Oil and Gas Deal of the Year 2017 by the IJGlobal.

The suc­cess­ful fi­nanc­ings within

OOC group of com­pa­nies ex­hibits the con­fi­dence in the fi­nanc­ing com­mu­nity and the lenders from all parts lo­cally and in­ter­na­tion­ally to­wards both the com­pany and the coun­try. This comes along as a re­sult of col­lec­tive team ef­forts within the group of com­pa­nies as well as the trust of the re­spec­tive fi­nan­cial houses and ad­vi­sors, Eng. Isam said.

The in­ter­na­tional bod­ies whom have recog­nised OOC’s fi­nanc­ing ef­forts are Project Fi­nance In­ter­na­tional (PFI), which are the lead­ing source of global fi­nance in­tel­li­gence. IJGlobal, a project fi­nance and in­fra­struc­ture jour­nal, as well as TXF, an award that is given to the top ten deals that are recog­nised for most in­no­va­tive, mar­ket in­flu­enc­ing trans­ac­tions within trade, com­mod­ity and project fi­nanc­ing.

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