S&P gives #Oman oil and gas firm EDO 'BB-' rating | Reuters

S&P gives Oman oil and gas firm EDO 'BB-' rating | Reuters

S&P Global Ratings assigned Oman state oil and gas producer Energy Development Oman (EDO) a "BB-" rating with a stable outlook, citing access to sizeable hydrocarbon reserves and a leading share of Omani production.

EDO's low operating cost structure, along with its reserves and market share, all support cash flow visibility, the rating agency said. The rating is in line with Oman's sovereign rating.

EDO, set up in late 2020 to take majority ownership of Oman's largest oil block called Block 6 and to help raise debt, raised a $2.5 billion loan last August.

Omani media outlet WAF News Agency reported in November that EDO would raise around $1.5 billion through a bond sale, depending on market conditions, citing Oman's then-energy and minerals minister, who was replaced in June.

"We view positively the company's access to sizable reserves via concession agreements until 2044. These total more than 1.5 billion barrels of oil equivalent (boe) in proven (1P) reserves and include more than 60% of Oman's 1P oil and nonassociated gas condensate (NAGC) reserves," S&P said.