The new Omani joint-stock company will own a stake in the state-owned Petroleum Development Oman
Omani joint-stock company will have a stake in PDO. (Credit: Terry McGraw from Pixabay)
Oman has reportedly established a new state energy company, named Energy Development Oman (EDO), to invest in conventional and renewable energy sectors.
The move comes as the country intends to offset the impact of lower oil prices, reported Reuters.
The new Omani joint-stock company will own a stake in the state-owned oil and gas exploration and production company Petroleum Development Oman (PDO).
Additionally, the new company will have interests in Block 6 licence, which majorly contributes to the country’s hydrocarbon production, reported Oman Daily Observer.
According to Royal Decree 128/2020 published in the Official Gazette, EDO will also be engaged in hydrocarbon exploration and production activities as well as invest in upstream and midstream segments of the hydrocarbon value chain.
EDO’s authorised and issued share capital is $1.3m
The new Omani joint-stock company will be managed by a five-member board of directors, who will be appointed by Royal Decree.
According to the Gazette, the new company’s authorised and issued share capital is OMR500,000 ($1.3m) that are divided into 500,000 shares.
According to the Royal Decree’s Article 4, the new entity is authorised to “undertake all activities…including but not limited to the purchase of, or otherwise acquire, or import, procure, manufacture, produce, store, transport, trade in, distribute, sell, supply, market, export or deal in renewable energy products and technologies, including without limitation, solar panels and electric vehicle charging facilities.”
In November, Sweden-based energy company Maha Energy announced securing the Royal Decree for a new onshore exploration block in the country.
Located in the middle of the Salt Basin in the central part of Oman, Block 70 is spread over an area of 639km2.
Maha will be the operator of the block and will hold a 100% working interest. There are eight wells that have been drilled within the block’s boundary.