Sunday 6 December 2020

#Oman Starts New Energy Company as It Seeks to Leverage Oil Block - Bloomberg

Oman Starts New Energy Company as It Seeks to Leverage Oil Block - Bloomberg

Oman established a new government-owned energy company as it seeks to use its largest oil block to raise debt.

The firm, to be called Energy Development Oman, will own a shareholding in Petroleum Development Oman LLC as well as an interest in Block 6, according to a government gazette on Sunday. The company will “undertake hydrocarbon exploration and production operations” and can borrow money “in any manner,” according to the gazette.

Energy Development Oman will also be able to invest abroad and deal in renewable-energy products.

Bloomberg reported last month that Oman, which is struggling to finance a soaring budget deficit, planned to transfer its 60% stake in Block 6 from Petroleum Development Oman to a new company, which would try to issue around $3 billion of bonds in the first half of 2021. JPMorgan Chase & Co. is advising the government on the plan, according to a person familiar with the matter.

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