Oman Oil Company (OOC), the Government’s investment arm in the energy related sectors and its group of companies have successfully raised funding commitments of approximately $11 bn since January 2017 despite the challenging global economic conditions.
This was disclosed by Eng. Isam Bin Saud Al Zadjali, CEO, Oman Oil Company at the 1st OOC media gathering held at Grand Hyatt recently. 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. "We are looking at more investments in the near future," he 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 awards- Petchem 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 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.