Muscat: The State General Reserve Fund (SGRF) said that the decision to liquidate GlassPoint Solar, in which Oman owns 31 percent stake, came after the sharp drop in oil and gas prices as a result of the global economic slowdown due to the Covid-19 pandemic and the negative effects reflected on a large number of sectors globally and locally.
The statement said the partners at Glass Point decided not to pump additional funds to continue the company's operations in light of the decline in oil and gas prices, which may continue at current low levels level for periods that are difficult to predict.
The statement pointed out that Glass Point Solar has a regional office in the Sultanate with some employees, and efforts have been made with the Omani staff to find alternative job opportunities. Plans are underway on the necessary procedures in preparation for their employment in other institutions affiliated with the Fund and other companies.
He explained that the intellectual property (IP) of the technology used is one of the most important assets of the company and is the generation of steam using solar energy, where some investors expressed their desire to purchase the intellectual property of this technology, which will be dealt with by the executing agency to liquidate the company's assets as per the regulations.
The statement noted that the Sultanate was able, through its partnership, to localize the technology owned by the company and successfully achieved the use of that technology in developing a huge Miraah project in partnership with the Petroleum Development of Oman Company
Replacing the use of natural gas with solar energy enabled the provision of gas and its use in industrial and economic purposes with higher feasibility and the value of the project is about $600 million when it was implemented at the specified time and budget.
The project is currently operating according to the expected results without any influence and under the direct supervision of the PDO management.
Just as the project provided an opportunity to attract foreign investment to the Sultanate, it also contributed to the transfer of technology to the Sultanate and the preparation of Omani competencies capable of working in this field.
The GlassPoint company specializes in the techniques of using solar steam generators to reduce the use of quantities of natural gas consumed in oil fields is a global company based in Silicon Valley in the United States of America
It has nearly 12 companies, including Shell International, in addition to the Sultanate, which owns about 31 percent of the company and other international funds and specialized oil companies.
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