By Staff writer
State-backed firm also plans to increase crude oil production to 600,000 barrels per day this year
Oman’s state-backed firm Petroleum Development Oman (PDO) has revealed it will borrow $3.4 billion from an international finance house in the next few weeks to fund its operations.
Company executives said the reason behind the move is to aid the government with low revenues and allow it to ‘redeploy the resources on other projects.’
“Revenues for the government are reduced, so we are trying out to help the government by borrowing for the PDO needs in the near future,” the firm’s managing director Raoul Restucci told Times of Oman, adding that the loan will help meet the company’s needs for the next nine to twelve months.
Restucci said the loan will go towards projects in oil and gas development as well as capital and operating costs. He said the firm is planning to increase crude oil production to 600,000 barrels per day in 2016.
Restucci also said the company’s enhanced oil recovery (EOR) projects are going as planned without delays.
Undersecretary at the Ministry of Oil and Gas Salim bin Nasser Al Aufi said PDO’s move to borrow funds ‘makes a lot of sense.’
“This step will change the culture and working style of PDO because now they are responsible to this financing firm on their project performances, on company performances and so on,” he said.