Petroleum Development Oman (PDO) is in the process of securing a $3.4bn loan from an international finance house to fund its operations, Times of Oman reported.
PDO’s managing director Raoul Restucci told reporters on the sidelines of a corporate event that the move comes “in response to the current low oil price environment.”
“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,” he said.
PDO is due to sign the deal in next few weeks, with the money expected to support the company’s government funded activities over the next nine to twelve months, according to Restucci.
“We are not going to the government to find funds for our activities in this tough time, we are borrowing it and this will allow the government to redeploy the resources on other projects,” he said,adding that the amount could exceed $3.4bn.
“We are looking to deploy it in oil and gas development, capital and operating cost, etc., as we go forward.”
PDO is majority owned by the government of Oman with a 60% share Shell (which has a 34% interest), Total (4%) and Partex (2%).
The company is the major exploration and production firm in the Sultanate, accounting for about 70% of the country’s crude-oil production and nearly all of its natural gas supply.
