Page 14 - MEOG Week 20 2021

MEOG NEWS IN BRIEF MEOG

POLICY COMPANIES fifth for 2021. They’ve already started, and
appointed a financial adviser,” said Ruhmy.
Iran’s veteran oil minister EDO has begun fundraising “We are looking at the first tranche being
around $5 billion, and there will be a second
Zanganeh to retire for hydrocarbon activities and third tranche.”
This $5 billion would cover EDO’s funding
Iran’s veteran oil minister Bijan Namdar Petroleum Development Oman, or PDO, obligations for PDO and Oman’s gas projects
Zanganeh on May 17 announced that he is has a budget of $4 billion for its capital for two years. Meanwhile, Oman’s gas
to retire once a new president is inaugurated expenditures and operational costs in 2021, program for this year is expected to cost $1.3
following June’s election and that he would and the fundraising for this is underway, billion, for both opex and capex, according to
not change his mind even if he was asked to Oman’s oil minister Mohammed Al-Rumhy the minister.
do so by the incoming administration. told S&P Global Platts in an interview. The creation of EDO is the latest move
“Even if they nominated me for the PDO, which produces the bulk of in the restructuring of Oman’s oil and gas
presidency, I would not accept it, let alone Oman’s crude, is 60% owned by the Omani entities.
for the [oil] ministry,” Zanganeh, who turns government. Royal Dutch Shell holds 34% In 2019, the Omani government also
69 next month, said. “I will retire from stake, Total owns 4% and Partex has 2%. integrated state-owned Oman Oil with several
government activities.” In December, the sultanate created other mid and downstream companies to
He added that he would “remain in Energy Development Oman, or EDO, a create OQ. There is a medium-term plan to
politics,” but without a formal post. “Politics is new government entity that has been given IPO a 20% to 25% stake of OQ, when more
like life—you cannot really disengage from it.” the charge to represent the government’s favorable market conditions arise.
Zanganeh is approaching the end of stake in PDO, and also to raise financing On May 18, PDO announced it has created
his second eight-year term as oil minister. independently of the Sultanate’s Ministry a subsidiary focused on services, known
His first term was under former president of Energy, which can be secured against as PDO Services, or PDO-S, which will be
Mohammad Khatami between 1997 and 2005. its projects. PDO’s main asset is Block 6, utilized to leverage and commercialize PDO’s
Prior to that, he held the position of energy which is Oman’s largest field and produces technical and operating capabilities, accelerate
minister from 1989 to 1997, and the post of approximately 650,000 b/d, and is undergoing technology transfer and transition PDO and
construction minister from 1984 to 1989. further development. Oman to new energies, while supporting a
His near-30 years in key ministerial The legal framework for the establishment knowledge-based economy in the country.
positions has earned him the moniker of of EDO is now finished. Oman’s government- Oman pumped an average of 740,000
“sheikh of ministers” in the Iranian press. owned gas projects are in the process of being b/d of crude in April, slightly surpassing its
Former oil ministry officials say that transferred to EDO, Rumhy said. OPEC+ quota of 732,000 b/d, according to the
Zanganeh was a driving force behind Iran’s “EDO will own 100% of gas inside Block S&P Global Platts OPEC survey. However, it
ability to bring foreign oil companies to work 6, and 60% of the oil. So, it will fund 100% has a maximum production capacity of about
in the Iranian upstream, which in turn helped gas and 60% oil from July or August, when 1 million b/d.
build the foundation to raise Iran’s crude the EDO will take over the responsibility of While Oman’s focus is on managing
output to around 4mn b/d in late 2004, Argus funding,” the minister said. the natural decline of its production, there
Media wrote. PDO’s foreign partners will fund the is some scope to increase its production
The Iranian presidential election is remaining 40% of the budget, which includes capacity through condensate associated
scheduled to take place on June 18. The new exploration and development of new assets. with gas projects, and also some heavy oil
president will be inaugurated in mid-August. “What EDO is doing now is come up with developments.
BNE a five-year program for PDO and gas. The “There are opportunities to increase
funding will be annualized, with roughly a production, but it needs investment. We have

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