Oman’s state energy company seeks $ 1.5 billion in funding, Energy News, ET EnergyWorld

DUBAI: Energy Development Oman (EDO), a relatively new state-owned company, is in talks with banks to raise $ 1.5 billion in debt financing, two sources said.

EDO was created late last year to take ownership of Oman’s largest oil block, Block 6, and to help raise debt.

“EDO is looking to raise around $ 1.5 billion,” one of the sources familiar with the matter told Reuters. The source said the funding could take the form of a loan.

The funding is to help fund capital spending, a second source familiar with the plan said.

Block 6 is Oman’s largest oil and gas operation, according to energy consultancy firm Wood Mackenzie.

The company is working with JPMorgan on its financing plan, the sources said, adding that lenders in the United Arab Emirates (UAE) are very interested in participating in the deal. EDO could not be reached for comment. JPMorgan declined to comment. In May, Energy and Minerals Minister Mohammed al-Rumhy told Oman’s WAF news site that EDO would officially launch an international campaign to raise $ 3 billion to fund its operations.

EDO will work on oil and gas exploration as well as renewable energy projects in Oman, the government said last year.

Oman recently raised $ 1.75 billion in sukuk over nine years after exceptional investor demand for the issue, helped by a rise in oil prices over the past year and a budget consolidation plan.[nL3N2NR297}[nL3N2NR297}[nL3N2NR297}[nL3N2NR297}

Rated under investment grade by all major rating agencies, the Gulf State will face significant debt maturities over the next few years.

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