Page 15 - GLNG Week 02 2023
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GLNG MIDDLE EAST GLNG
Oman to launch
state gas firm
POLICY OMAN is working to set up an Integrated Gas implementation of government policies around
Co. that will manage the Sultanate’s full gas sup- the sales price of gas, the quantities allocated to
ply chain, following a late December announce- its various sectors as well as driving growth in
ment by the Ministry of Finance. economic activity and local value add in the gas
State media carried an official statement sector.
which said that the ministry had approved the A few days before the announcement, state-
firm’s “articles of association and financial bylaw owned Oman LNG signed deals covering the
in accordance with the provisions of the Com- sale of more than 3mn tonnes per year (tpy) of
mercial Companies Law No. 18/2019 and its LNG to several Japanese companies in deals
amendments, the Privatisation Law issued by ranging in length from five to 10 years.
Royal Decree No. 51/2019, and Royal Decree Meanwhile, reports emerged in mid-2022
No. 80/1998 issued regarding the Capital Market that state energy giant OQ was lining up banks
Law and its amendments”. to work on the potential initial public offer-
The Integrated Gas Co. will manage all of ing (IPO) of its gas pipeline business, a strat-
Oman’s gas allocations, assets, rights and obli- egy employed to great effect by the Abu Dhabi
gations for the purchase, sale, import, export National Oil Co. (ADNOC) and Saudi Aramco,
and transportation of natural gas and associated which both raised billions of dollars through the
products on behalf of the government. leasing out and leasing back of these assets.
Muscat envisages an improvement in Oman’s Such a move would aim to make the most of a
financial performance through the exclusion of renaissance in Omani gas following the develop-
gas purchases and transport from the state’s gen- ment of the sizeable Khazzan and Ghazeer tight
eral budget, with the ‘IGC’ to supply net gas reve- gas developments in Block 61. BP has developed
nues to the general treasury. This is seen “raising the 3,700-square km concession in two stages –
the efficiency of managing the gas sector and Khazzan came into production in 2017 and pro-
ensuring the efficient application of the terms duces 28mn cubic metres per day of gas, Ghazeer
of contracts signed in this sector, whether with came on stream in 2020, adding another 14 mcm
producers or consumers,” the statement added. per day.
The company is also expected to support the
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