Muscat: The annual revenue generated by Energy Development Oman (EDO) totals OMR6.3 billion (USD 16.4 billion), representing a significant contribution to the gross domestic product (GDP) at the end of 2023, which stood at 22%.
In a recent development, Standard & Poor's has elevated the long-term sovereign credit rating of the Sultanate of Oman, both in local and foreign currencies, from 'BB+' to 'BBB-,' maintaining a stable outlook. This upgrade has prompted a corresponding adjustment in the general credit rating of EDO to align with the sovereign rating.
Sultan bin Ali Al Mamari, the Chief Financial Officer (CFO) of Energy Development Oman, has stated that the enhancement of the credit rating to 'BBB-' will facilitate EDO's ability to secure financing at competitive rates, thereby broadening its investor base through bond issuances.
He emphasized that Energy Development Oman plays a crucial role in the Sultanate's government strategy, which focuses on enhancing financial stability. This, in turn, supports efforts to improve the credit rating.
Regarding the financial performance of EDO for the first half of 2024, the company reported positive results, with its income reaching OMR3.2 billion by the end of June 2024.
The company's investment program is currently valued at OMR1.5 billion, with a significant portion allocated to its share in Block 6, with 60% in oil and 100% in gas.
Al Mamari highlighted that the daily production at Block 6 has increased to 674,000 barrels, surpassing the previous year's figure of 651,000 barrels, while also achieving an additional 83,000 barrels of oil condensates.
Azhar bin Ahmed A Kindi, the Chief Operation Officer (COO) at EDO, mentioned that the company is pursuing various initiatives aimed at improving operational efficiency to reduce production costs.
Furthermore, the company, through its subsidiary Petroleum Development Oman (PDO), is actively involved in executing numerous community initiatives designed to support local communities and bolster national efforts, reflecting the company's commitment to sustainable development.
It is important to note that EDO is a government-owned entity, holding a 60% stake in the oil concession (Block 6) and 100% shares in the non-associated gas concession (Block 6) and Hydrogen Oman (Hydrom).
