Friday, June 18, 2021 | Dhu al-Qaadah 7, 1442 H
clear sky
32°C / 32°C

OOCEP closes $1bn pre-export finance facility


Oman Oil Company Exploration & Production LLC (OOCEP) has announced the successful signing of a $1 billion loan facility to fund its continued growth and expansion. The new financing agreement is structured as a crude oil pre-export facility with a tenor of five years and contains an accordion option to allow additional funding of $500 million if required.

The transaction attracted keen interest from the global finance community and closed heavily oversubscribed by a group of international banks, priced at 170 basis points over the London Interbank Offered Rate (LIBOR).

Commenting on the formal announcement of the new financing facility for OOCEP, Eng Isam al Zadjali (pictured), Chief Executive Officer of Oman Oil Company (OOC) noted, “We are delighted with the strong response and competitive pricing achieved in this OOCEP inaugural external financing, despite challenging market conditions. It is an expression of confidence in OOCEP’s future outlook from leading international banks. Our ability to attract this funding is a testament to the hard work of our employees and our continued growth in the upstream sector.”

“Our investment in OOCEP has matured to the point where the company can finance itself and directly contribute to OOC’s expansion plans in support of the continued growth and diversification of Oman’s economy,” Eng Isam al Zadjali added.

The facility attracted some of the leading names in international banking. Natixis and Societe Generale Corporate & Investment Banking acted as initial mandated lead arrangers, book-runners and coordinators, joined by HSBC Bank Oman SAOG as initial mandated lead arranger and coordinator. Crédit Agricole Corporate & Investment Bank, Credit Suisse AG, ING, Intesa Sanpaolo and Sumitomo Mitsui Banking Corporation joined the deal as initial mandated lead arrangers, while ABN AMRO Bank NV, Mitsubishi UFJ Finance Group and Mizuho Bank acted as mandated lead arrangers.

Commenting on the successful closing of the new loan facility, Eng Ayad al Balushi, Director of Finance at OOCEP stated “We’re very proud of the overwhelming interest shown by the financial community, and give thanks to all those involved in the arranging and closing of the new facility.

This is a very significant milestone for our company.”

The asset base of OOCEP continues to generate sustainable growth, while developing new reserves and optimising hydrocarbon recovery. The billion dollar loan facility will be used to repay a shareholder loan and fund OOCEP’s activities and investment programme.

Most Read
No Image
The Chedi Muscat makes official statement Riyada clarifies on expatriate permit fees Muscat Municipality to close Wadi Kabeer road Mutated variants of coronavirus recorded in Oman
arrow up
home icon