Oman’s Bank Nizwa has signed an agreement to arrange a structured Sharia-compliant financing facility of $150mn to Indonesia’s South Sea Energy (SSE) for development and production project in Block 17 in the Governorate of Musandam.
This agreement with a fully Islamic bank, reaffirms the growing role of Sharia-compliant solutions in the oil and gas sector in Oman.
The move comes as the Sultanate continues to open its doors to many international exploration firms in order to boost oil and gas production.
The South Sea Energy is one of the key partners in the joint venture PetroTel Oman (PetroTel), operator of the 2,378 sqkm onshore Block 17. With its international expertise in the oil and gas industry, the company is gearing up to finding further untapped reserves in Musandam.
The agreement was signed by Dr Jamil El Jaroudi, chief executive officer of Bank Nizwa; and Datuk Seri Mahmud Abu Bekir Taib, executive vice president of South Sea Energy Tun Pehin Sri Haji Abdul Taib bin Mahmud was also present.
Bank Nizwa will be responsible for advising and structuring the financing for South Sea Energy.
“This agreement demonstrates our strength and capability in supporting the growth of key sectors in Oman. As the trusted partner for SSE, we will be exploring various financing avenues to raise the necessary funds for this mega-project in Block 17,” Jaroudi said.
“Acting as intermediaries and consultants, we will also be sharing insights on the local industries, regulations and processes to ensure a seamless and rewarding project management and implementation,” he said.
