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
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.