A Royal Decree has ordered the establishment of a new state-owned energy company named Energy Development Oman which will own a shareholding in Petroleum Development Oman (PDO) and an interest in the sultanate’s largest oil concession area -Block 6. The company can also borrow or raise money.
The authorised and issued share capital of the company is RO500,000, divided into 500,000 shares with a nominal valve of RO1 each.
According to Royal Decree No 128/2020, issued in the Official Gazette on Sunday, the principal commercial objectives of the new energy company are to ‘own a shareholding in PDO and an interest in Block 6 petroleum agreements, and undertake hydrocarbon exploration and production operations in Oman in accordance with such agreements’.
As per the Royal Decree, Energy Development Oman will also undertake any other project, operation and activity directly or indirectly related to the exploration, development, extraction, production, transportation, ownership, sale, storage and delivery of hydrocarbons. The new company will also undertake any project, operation and activity directly or indirectly related to renewable energy in Oman.
The headoffice of the new energy company will be in Muscat and its board may establish branches, representative offices or agencies in Oman or other countries. The company’s board will appoint a CEO, a chief financial officer and other senior executives who will be responsible for managing the company on a day-to-day basis.
The duration of Energy Development Oman is unlimited and commences on the date that the company is registered in the Commercial Register of the Ministry of Commerce, Industry and Investment Promotion.
‘The company (Energy Development Oman) can also borrow or raise money and/or financing of any nature or secure, guarantee or discharge any debt or obligation of the company and/or any third party in any manner whatsoever,’ the Royal Decree stated.
It added that the new company’s board will consist of five directors appointed by Royal Order. ‘All directors must be non-executive directors who do not receive a fixed monthly or annual salary from the company’.
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