State-owned firm Petroleum Development Oman (PDO) has secured $4bn in financing from a group of international financial institutions to fund the construction of new facilities amid plunging oil price.
The funding will be used by PDO to support the construction activities of major new oil and gas facilities to provide long-term economic benefits to the country.
HSBC Bank Oman acted as the international financial advisor for the five-year pre-export finance facility, which was provided by a syndicate of international banks.
PDO managing director Raoul Restucci said: "PDO has robust growth plans in place and we are determined to stay the course and to deliver on our long-term ambitions.
"The money raised will help us to finance our business plans, as well as create more jobs and training opportunities for Omanis.
"This competitive new source of funding will enable us to reduce reliance on Government funding, so that it can redeploy resources to other areas of the economy."
The financing is a part of PDO’s effort to invest more than $20bn over the next five years to sustain the long-term hydrocarbon output.
PDO is currently undertaking the Rabab Harweel integrated project in the Harweel Cluster of fields in the south of Oman.
The Rabab Harweel project includes development of sour gas processing facilities and associated gathering and injection systems and export pipelines.
Upon commissioning in 2019, the project is expected to develop 240 million barrels of oil and 100 million barrels of condensate along with the export of one trillion cubic feet of non-associated sale gas.
PDO, which accounts for about 70% of the country’s crude-oil production, is 60% owned by the Government of Oman. The remaining stake is held by Shell Group with 34%, Total 4%, and Partex 2% interest.
Image: The Rabab Harweel gas field located in Oman. Photo: courtesy of Petroleum Development Oman/MAN SE.