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OIA made the revelation in its maiden annual report, covering its financial and operational performance over the June 2020 – December 2021 period.
Oman Investment Authority (OIA), the integrated sovereign wealth fund of the Sultanate of Oman, says it has green-lighted an “exit plan” submitted by wholly-owned energy and petrochemicals subsidiary OQ Group envisioning divestments totalling between RO 1.5 billion and RO 2 billion.
OIA made the revelation in its maiden annual report, covering its financial and operational performance over the June 2020 – December 2021 period, and published earlier this week.
“(The Authority) approved an exit plan valued between RO 1.5 billion and RO 2 billion through selling some shares to the private sector or offering them for subscription in the public capital market and attracting strategic partners to benefit from their knowledge and improve performance,” it stated.
No details were shared about the OQ-owned or affiliated assets that have been lined up for full or partial divestment. But in a statement issued last month, OIA revealed that it was prepping two OQ projects, among other ventures from across the Authority’s sizable portfolio, for listing on the Muscat Stock Exchange (MSX) via Initial Public Offerings (IPO).
Recent divestments undertaken by OQ over the period under review include its stakes in India-based Bharat Oman Refineries Limited (BORL) and Portuguese energy sector Redes Energéticas Nacionais (REN).
In other key financial and operational highlights of the past year, OQ transferred its shareholding in Oman Shipping Company to Oman Investment Authority. OQ also issued bonds valued at RO 288 million in the “international capital markets at a competitive price, with significant participation of major investors and financial institutions,” OIA stated in its annual report.
Developments in the renewables and green hydrogen space have also been significant, according to the report. In addition to launching an Alternative Energy Department focused on supporting green hydrogen and ammonia initiatives, OQ also signed a number of agreements with international companies to develop green energy projects in Duqm SEZ and Dhofar Governorate.
Another key highlight of the year has been the successful conclusion of a number of agreements with the Ministry of Energy and Minerals, Oman Shell and TotalEnergies linked to the development of gas and condensate reserves in Block 10 in central Oman. The output, which will begin flowing from mid-2023, will eventually be channelled to Marsa LNG, a new green LNG project due to come up at Sohar Port to provide LNG as bunker fuel for maritime shipping. Marsa LNG is a joint venture between TotalEnergies and OQ.
In Block 60, wholly owned and operated by OQ’s Upstream unit, the company recently reported a five-fold increase in output from the Bisat field. Furthermore, the successful completion of the Bisat B Project has also enabled the doubling of production well above capacity, it said.
Earlier this week, international ratings agency Fitch Ratings Fitch Ratings affirmed OQ’s Long-Term Issuer Default Rating (IDR) at 'BB-' with Stable Outlook.
Fitch also revised up OQ's Standalone Credit Profile (SCP) to 'b+' from 'b' to “reflect successful project execution in both the upstream and downstream segments, alongside stronger financial performance on higher oil and gas prices as well as refining and petrochemical margin leading to lower net leverage expectations. OQ's SCP also reflects its solid business profile with integrated operations spanning exploration and production (E&P), refining, marketing, chemical and petrochemical segments,” the ratings agency added.
OQ Group, with assets totalling $27.6 billion as of June 30, 2021, owns and operates businesses across the Oil & Gas value chain. OQ posted a profit of RO 701.664 million for the year ended December 31, 2021 after recording a loss RO 1,716.944 million during the previous year. Total revenue surged to RO 8.768 billion in 2021, up from RO 5.393 billion in 2020. Operating profit climbed to RO 958.791 million versus an operating loss of RO 1.575 billion in 2020.
source: zawya
Aviation sector’s contribution to Omani economy projected at RO 1.4 bn by 2040
29 Sep 2019 Written by Admin AdminThe contribution of Oman’s aviation industry, as an enabler of the nation’s pivotal tourism and logistics sectors, is projected to surge in value terms to RO 1.4 billion by the year 2040, up from RO 170 million in 2016, according to the head of Oman Airports.
Shaikh Aimen al Hosni (pictured), CEO, said the company — part of Oman Aviation Group — continues to leverage investments made by the Omani government in the development of modern airports and other associated infrastructure to add value to the national economy.
Apart from the accent on efforts to drive tourist inflows, Oman Airports is focused on the development of Airport Cities, Airport Free Zones, Airfreight Services, Premium Airport Services, and Cargo Handling distributed across three key pillars: Tourism, Aviation, and Logistics, he said.
Al Hosni made the comments in a presentation on the ‘Role of Airports in Driving Inbound Tourism’, which he delivered during a seminar hosted by the Modern College of Business and Science at the Muscat InterContinental Hotel yesterday.
Oman Airports currently oversees a portfolio of seven airports in the Sultanate, comprising the international airports in Muscat and Salalah, regional airports in Suhar and Duqm, and the three airports of Petroleum Development Oman (PDO) in Marmul, Qarn Alam and Fahud.
These seven airports handled a total of 17.2 million passengers last year, up from 6.2 million in 2010, representing a three-fold jump over the period. The tally is projected to cross 18 million passengers in 2018, he said.
Muscat International Airport, a landmark in its own right, will be expanded in a further three phases to reach an optimum capacity of 100 million passengers in the future, he said.
As an important enabler of the tourism and logistics sectors, Oman Airport is also looking to attract new airlines to the Sultanate, said Al Hosni.
Besides national carrier Oman Air, as many as 35 carriers from around the world currently fly through airports in the Sultanate, with the number growing incrementally at the rate of 2-3 airlines annually.
The goal now is to attract airlines from Asia, Africa and parts of Europe to ensure adequate connectivity with promising tourism markets, he said.
Oman’s strategic location in the Middle East, according to the CEO, effectively brings within its reach 34 per cent of the world’s population within a four-hour flying time, rising to 86 per cent within eight hours.
By capitalising on this potential, the Sultanate can serve as a hub for aviation, he noted.
source: omanobserver
Ooredoo partners MATRIXX Software to digitally transform mobile experience in Kuwait, Oman
20 Apr 2019 Written by Admin AdminMATRIXX Software is a Silicon Valley-based company whose MATRIXX Digital Commerce Platform is 'reinventing' global business
Ooredoo has announced a partnership with MATRIXX Software, a Silicon Valley-based company whose MATRIXX Digital Commerce Platform is "reinventing" global business, to digitally transform the mobile experience for millions of mobile customers in Kuwait and Oman.
The partnership was announced at the Mobile World Congress in Barcelona on Tuesday.
Ooredoo Kuwait has launched ‘ANA’, giving customers complete control of their mobile plans, and the freedom to choose and customise the digital package that fits their needs.
In Oman, Ooredoo has expanded its successful Shababiah digital service to include postpaid mobile services, all powered by MATRIXX, which specialises in helping mobile customers buy, manage, share and pay for digital services.
Both Ooredoo Kuwait and Ooredoo Oman are the first operators in their markets to launch such services, which provides an all-digital, individually customised mobile product that gives customers complete control of their mobile plans and digital worlds, and makes it easier to buy, use and pay for Ooredoo services directly from their mobile phones.
Ooredoo Group Chief Executive Officer Sheikh Saud bin Nasser al-Thani said, “In line with the MWC theme of ‘Intelligent Connectivity,’ our new digital mobile services in Kuwait and Oman enrich our customers digital experiences with the freedom to choose and customise the digital package that fits their needs through features like eSIM, roaming and booster packs. Oman and Kuwait customers can create their own mobile number; make appointments, track health, pay bills, and much more. We are proud to push the digital experience boundaries for our customers, bringing the best of Silicon Valley through our partnership with MATRIXX.”
The launch of these new services reiterates Ooredoo’s position as a regional leader in digital transformation, having spearheaded many pivotal initiatives, such as the introduction of the first eSIM in Kuwait, and ground-breaking 5G trials.
Combined with Ooredoo’s award winning superfast networks, these new services from Ooredoo Kuwait and Ooredoo Oman will further enhance customers’ enjoyment of digital services.
Ooredoo is keen to use ANA and Shababiah to help empower a growing population of young, digital savvy customers with the latest technology, in line with the wider digital transformation plans such as New Kuwait 2035 and Oman Vision 2040.
Dave Labuda, founder, CEO and CTO, MATRIXX Software said, “We are honoured to partner with Ooredoo as it leads digital transformation in Kuwait and Oman. It is increasingly important for mobile operators to be able to offer their customers transparency, creativity and control.
“We are proud to have our MATRIXX Digital Commerce platform at the core of Ooredoo’s commitment to enriching their customers’ digital lives.”
Source: gulftimes
Shell CEO Ben van Beurden and Dr Mohammed bin Hamad Al Rumhy, Minister of Oil & Gas (MOG), have signed an Interim Upstream agreement that details funding and a work programme for 2019 for the development of gas resources destined for integrated projects to help meet the Sultanate of Oman’s growing need for energy. The other signatories were Petroleum Development Oman (PDO), Oman Oil Company (OOC) and Total.
Today’s upstream agreement covers gas acreage in the northern part of Block 6 located to the west of the existing Saih Rawl gas field that is operated by PDO. The project covers investments in gas exploration and production, in partnership with Total and OOC. The aim is to integrate the Shell and OOC share of the upstream project with the development of a gas-to-liquids plant (GTL) currently under discussion, to be developed and operated by Shell in partnership with OOC.
Chris Breeze, Shell’s country chairman in Oman, said, “Today’s agreement is a significant step forward. We hope that the development of gas resources destined for the integrated projects will play an important role in generating in-country value and diversifying Oman’s economy. This agreement marks a new chapter in Shell’s close partnership with the government of Oman.”
MOG, Shell and partners (OOC and Total) continue to work closely and diligently to finalise definitive agreements which will underpin the long-term success of the energy projects which were first outlined in the Memorandum of Understanding (MoU) signed in May 2018.
Source: omanobserver
According to the interview of Indrajit Sen with Salim bin Nasser Al Aufi, Undersecretary at the Ministry of Oil and Gas, at arabianindustry website, Oman’s oil production may go down a little bit in 2016, compared to 2015. One main reason for this drop is some planned activities that will take some production away. The focus will be more on activities that have as little impact as possible on production, including one or two rigs that they decided to shelve.
Oil prices have tumbled by over 40% since the start at the year, with brent crude - the global benchmark – presently trading at around $36 a barrel.
Asked if capital expenditure will be cut for 2016 in light of declining oil prices, the official said, “We have already planned in terms of what activities will be executed in 2016. We have reduced the budget to a large extent to the things that we think are very critical and are important for execution.”
“The only thing that probably remains for the companies to do is to go back and revise their own activities and make sure they become a little bit more efficient. But in terms of cutting activities, I think we have already gone past that bridge,” he noted.
Asked what the break-even cost of production for Oman would be, the undersecretary said, “We can go down to as low as it takes. It does not matter because.... ‘shutting in’ is going to cost us more money because you still need to pay for maintenance; you still need to pay for employment and so on.”
