Omani oil majors in talks on $4.35b loans
Omani oil majors in talks on $4.35b loans
Source : Khaleej Times
19-Apr-2016
Petroleum Development Oman is seeking $2.5 billion loan and Oman Oil Company is amending the terms of an existing $1.85 billion loans
Two major Omani state-owned oil companies are in negotiations regarding loan facilities worth a combined $4.35 billion, sources aware of the matter said on Sunday, as the duo turn to bank markets for finance in the wake of lower oil prices.
Petroleum Development Oman (PDO), majority-owned by Oman but with stakes held by Royal Dutch Shell, Total and Partex Oil and Gas, is seeking a $2.5 billion loan to fund its projects, two sources aware of the matter said.
Meanwhile, state energy investment firm Oman Oil Company has contacted banks about amending the terms of an existing $1.85 billion loan originally signed in September 2014, primarily aimed at increasing the length of the facility, according to one of the two sources, plus two further sources.
Oman Oil declined to comment, while PDO didn't respond to a request for comment. The sources spoke on condition of anonymity as the information is not public.
Meanwhile, Oman Oil is already speaking with banks about raising a $1 billion loan for its exploration and production subsidiary, its chief executive told Reuters last month.
The $1.85 billion loan which Oman Oil is seeking to revise was its first borrowing from international loan markets and was supported by 16 banks, according to a statement at the time.