A $100 million credit facility, signed recently by liquid logistics specialist Advario Terminals with a consortium of banks, will help secure the capital financing needs of its Oman operations, as well as fund its future growth ambitions, according to key company executives.
In exclusive remarks to the Observer, Hazza al Raisi, Finance Director, and Mark Geilenkirchen, Vice President Growth Middle-East, described the strategic financing as not only a testament to the company’s robust fundamentals, but also its ability to sustain value creation for its many stakeholders, comprising a mix of local and international public and private sector entities.
“The financing package demonstrates the confidence of lender institutions in Advario Oman’s performance, its business model and future prospects as a leading liquid logistics services provider in the Sultanate of Oman,” commented Geilenkirchen. The financing will contribute to increasing capital flexibility and optimizing the company’s balance-sheet.”
Al Raisi described the credit facility as a club deal with a consortium of leading two local banks – Bank Muscat and National Bank of Oman - and two regional banks – Mashreq Bank and Abu Dhabi Commercial Bank. The 7-year tenor of the credit facility builds on Advario’s roughly two decades-long relationship with the local banks, while fostering new relationships with the regional banks, he noted.
Advario – a carve-out of Oiltanking Terminals – operates a major terminal at Sohar Port that provides bulk liquid logistics services to tenants, as well as customers and traders from around the global energy sector.
With a storage capacity of nearly 1.4 million cubic metres and a wide range of tank types and sizes, the terminal is equipped to offer liquid bulk handling, terminaling, storage, blending, and other such services to clients. Tanks ranging in capacities from 2,000 cubic metres to 55,000 cubic metres handle a variety of petroleum products, notably gasoline, gasoil and naphtha, but also a range of chemical products as well.
Commenting on the terminal’s operational performance during 2024, Al Raisi said it broadly mirrored the 2023 performance in terms of liquid throughput volumes and handling activities. Advario's Sohar facility consistently attracts international clients due to its exceptional customer service, characterized by minimal wait times and efficient service delivery, he said.
During a high-visit to Oman last September, top officials from Advario’s Rotterdam headquarters pledged to support Oman’s sustainable development and its broader energy transition. Represented by Bas Verkooijen, CEO, and Douglas Van Der Wiel, Chief Commercial Officer, the executives also discussed a possible role for the company in supporting the country’s Net Zero strategy.
During meetings with Omani energy sector officials, Advario pledged to offer its expertise in the development of integrated cryogenic storage and logistics infrastructure to help Oman in the design, construction and safe operation of such infrastructure necessary to position the country as a leading exporter of low-carbon products.
Advario Oman’s joint venture partners include OQ, the Omani state-owned integrated energy group, Star Energy (Abu Dhabi) and Seven Seas (Oman).
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