Page 11 - MEOG Week 02 2023

MEOG PROJECTS & COMPANIES MEOG

Oman to launch state gas firm

OMAN OMAN is working to set up an Integrated Gas The company is also expected to support the
Co. that will manage the Sultanate’s full gas sup- implementation of government policies around
ply chain, following a late December announce- the sales price of gas, the quantities allocated to
ment by the Ministry of Finance. its various sectors as well as driving growth in
State media carried an official statement economic activity and local value add in the gas
which said that the ministry had approved the sector.
firm’s “articles of association and financial bylaw A few days before the announcement, state-
in accordance with the provisions of the Com- owned Oman LNG signed deals covering the
mercial Companies Law No. 18/2019 and its sale of more than 3mn tonnes per year (tpy) of
amendments, the Privatisation Law issued by LNG to several Japanese companies in deals
Royal Decree No. 51/2019, and Royal Decree ranging in length from five to 10 years.
No. 80/1998 issued regarding the Capital Market Meanwhile, reports emerged in mid-2022
Law and its amendments”. that state energy giant OQ was lining up banks
The Integrated Gas Co. will manage all of to work on the potential initial public offer-
Oman’s gas allocations, assets, rights and obli- ing (IPO) of its gas pipeline business, a strat-
gations for the purchase, sale, import, export egy employed to great effect by the Abu Dhabi
and transportation of natural gas and associated National Oil Co. (ADNOC) and Saudi Aramco,
products on behalf of the government. which both raised billions of dollars through the
Muscat envisages an improvement in Oman’s leasing out and leasing back of these assets.
financial performance through the exclusion Such a move would look to make the most of
of gas purchases and transport from the state’s a renaissance in Omani gas following the devel-
general budget with the ‘IGC’ to supply net gas opment of the sizeable Khazzan and Ghazeer
revenues to the general treasury. tight gas developments in Block 61.
This is seen “raising the efficiency of man- BP has developed the 3,700-square km
aging the gas sector and ensuring the efficient concession in two stages – Khazzan came into
application of the terms of contracts signed in production in 2017 and produces 28mn cubic
this sector, whether with producers or consum- metres per day of gas, Ghazeer came on-stream
ers,” the statement added. in 2020, adding another 14mcm per day.™

Week 02 11•January•2023 www. NEWSBASE .com P11