The Sultanate of Oman Has Decided to Sell a Stake in Its Most Valuable Gas Asset for 8 Billion United States Dollars
The Sultanate of Oman is seeking to sell a stake worth 8 billion United States dollars in its natural gas assets. The state-owned company Energy Development Oman (EDO) is currently looking for partners interested in acquiring a minority interest in gas fields that are part of Block 6.
Block 6 was separated in the year 2020 from Petroleum Development Oman (PDO)—the country’s largest oil producer—and transferred to the newly formed EDO. The company currently holds a 60 percent share in the oil concession and a 100 percent share in the gas concession of Block 6. The government of the Sultanate of Oman had initially planned to raise funds by issuing bonds through EDO, but those plans have been postponed several times due to instability in the global financial markets, according to a report by Bloomberg.
“Block 6 is the largest and most valuable oil and gas asset in the Sultanate of Oman,” stated Dalia Salem, Senior Analyst at Wood Mackenzie.
Block 6 contains approximately 10.7 trillion cubic feet of proven and probable reserves of non-associated natural gasand currently produces more than 56 million cubic meters of natural gas per day.
