Latest news with #OmaniGovernment
Zawya
a day ago
- Business
- Zawya
Oman's renewable energy doubles in 5 months
The contribution of solar and wind capacity to Oman's total electricity generation more than doubled to nearly 11.5 per cent during the first five months of this year, up from around 4.88 per cent at the end of December 2024. According to Nama Power and Water Procurement Company (PWP), the sole procurer of electricity and water capacity in the Sultanate, renewable energy—mainly from solar sources—accounted for 1.88 terawatt-hours (TWh) during the January–May 2025 period compared with total renewable output of 2.4 TWh for the whole of 2024. Around 89,840 households were supplied with clean electricity during the five-month period, resulting in annualised emissions reductions of approximately 617,300 tonnes, Nama PWP said. This rapid increase in renewable generation supports the Omani government's strategy to achieve a clean energy share of around 30–40 per cent of total generation capacity by 2030, rising to 60–70 per cent by 2040. The target is for 100 per cent clean energy generation capacity by 2050. In the next phase of renewable energy development, Oman is shifting its focus to wind power, with five wind farms—together representing over one gigawatt (GW) of capacity—currently under competitive tendering, overseen by Nama PWP. These projects are planned for Jaalan Bani Bu Ali, Duqm, Mahoot, Dhofar, and Sadah. The total investment in these Independent Power Projects (IPPs) is estimated at around 450 million Omani rials ($1.2 billion). (Writing by Nadim Kawach; Editing by Anoop Menon) (
Malay Mail
23-06-2025
- Politics
- Malay Mail
Singapore evacuates four citizens from Iran with help from Oman, Malaysia as regional tensions soar
SINGAPORE, June 23 — Four Singaporeans have been evacuated from Iran with assistance from the governments of Oman and Malaysia, the Ministry of Foreign Affairs (MFA) said today. A family of three was airlifted from Tehran to Muscat, while another Singaporean was evacuated to Ashgabat, Turkmenistan, alongside a group of Malaysians and other nationals, according to a report published today in The Straits Times. The MFA said the family was part of a group that included Omani citizens and other foreign nationals, and thanked the Omani government for its help. The other Singaporean was evacuated from Iran with support from Malaysia and arrived in Kuala Lumpur with a group of 24, comprising 17 Malaysians and six Iranians with family ties to Malaysians, according to Malaysian media. 'The Singapore Embassy in Muscat and the Singapore High Commission in Kuala Lumpur worked closely with their host governments and embassy counterparts to facilitate the Singaporeans' departure from Iran,' said an MFA spokesperson. Seven more Singaporeans also left Iran independently through land and sea routes, including via the Iran-Armenia land border and the port of Bandar Abbas to the UAE. Tensions in the region escalated after Israel launched air strikes on Iran on June 13, followed by US strikes on Iranian nuclear facilities on June 22. MFA expressed its 'deepest appreciation and gratitude' to the governments of Oman and Malaysia for ensuring the safe return of its citizens. The ministry said it remains in contact with Singaporeans in the region and continues to provide consular assistance.
Malay Mail
23-06-2025
- Politics
- Malay Mail
Singapore evacuates citizens from Iran with help from Oman, Malaysia as regional tensions soar
SINGAPORE, June 23 — Four Singaporeans have been evacuated from Iran with assistance from the governments of Oman and Malaysia, the Ministry of Foreign Affairs (MFA) said today. A family of three was airlifted from Tehran to Muscat, while another Singaporean was evacuated to Ashgabat, Turkmenistan, alongside a group of Malaysians and other nationals, according to a report published today in The Straits Times. The MFA said the family was part of a group that included Omani citizens and other foreign nationals, and thanked the Omani government for its help. The other Singaporean was evacuated from Iran with support from Malaysia and arrived in Kuala Lumpur with a group of 24, comprising 17 Malaysians and six Iranians with family ties to Malaysians, according to Malaysian media. 'The Singapore Embassy in Muscat and the Singapore High Commission in Kuala Lumpur worked closely with their host governments and embassy counterparts to facilitate the Singaporeans' departure from Iran,' said an MFA spokesperson. Seven more Singaporeans also left Iran independently through land and sea routes, including via the Iran-Armenia land border and the port of Bandar Abbas to the UAE. Tensions in the region escalated after Israel launched air strikes on Iran on June 13, followed by US strikes on Iranian nuclear facilities on June 22. MFA expressed its 'deepest appreciation and gratitude' to the governments of Oman and Malaysia for ensuring the safe return of its citizens. The ministry said it remains in contact with Singaporeans in the region and continues to provide consular assistance.
Zawya
12-06-2025
- Business
- Zawya
Effect of declining oil prices on Oman's budgetary obligations
US President Donald Trump's recent tariff-related decisions have unleashed a wave of economic and political impacts for developed and emerging countries alike. These decisions have negative repercussions on global oil markets, leading to a decline in revenues for countries that rely on exports of this commodity as a primary source of national income. Globally, average global oil prices fell to $73 per barrel during the first quarter of this year, down from $83 per barrel during the same period last year. This poses a challenge for many oil-producing countries, including the Sultanate of Oman. According to recent analysis, Omani oil export revenues fell by approximately RO 200 million. A part of this decline was offset by an increase in tax revenues from RO 27 million during the corresponding quarter in 2024 to RO 72 million this year, thanks to improved tax collection. However, the current second quarter is expected to be more difficult, with the average oil price expected to fall to $66 per barrel. Everyone knows that the Omani government seeks to diversify sources of income and develop alternative economic sources to oil, while simultaneously committing to repaying its external debt, which amounted to approximately 14.3 billion Omani riyals by the end of the first quarter of this year, 2025, compared to approximately 15.1 billion Omani riyals by the end of the same period in 2024. The Sultanate of Oman is committed to repaying its public debt, which amounts to approximately RO 2.5 billion annually. This represents a significant burden on the state budget, which is affected by the decline in global oil prices. According to the financial data report, Oman's public revenues decreased by approximately 7 per cent by the end of the first quarter of this year, recording approximately RO 2.635 billion, compared to RO 2.826 billion during the same period last year, due to the decline in global oil prices. Net oil revenues constitute a major item in the country's financial budget, along with gas revenues and followed by non-oil revenues. The government works to manage the country's various financial obligations related to the economic and social spheres each year. At the same time, the government is working diligently to reduce the country's public debt to an appropriate level relative to the gross domestic product. This helps the country improve its credit rating, which has become highly valued by international financial institutions. This also helps attract more foreign investment, especially as the country is now approaching the list of global investment-attracting countries. Indeed, the Sultanate has succeeded in attracting investments over the past years, which has contributed to the improvement of the country's financial, economic, and social conditions. As is well known, the decline in oil prices for oil exporting countries has a direct and significant impact on their public budgets. This leads to difficulties in their ability to meet financial obligations, both internally and externally, due to their economies' heavy reliance on oil revenues. In Oman, it has negative repercussions on the fiscal budget, as oil constitutes more than 65-70% of government revenues. Any decline in prices directly leads to a decline in revenues, causing a budget deficit. This forces the government to cover the deficit through borrowing or drawing from reserves. It also results in the postponement or reduction of development projects and a slowdown in the growth of the non-oil economy.
Observer
28-02-2025
- Business
- Observer
OQEP announces strong results in 2024
MUSCAT: Oman's leading exploration and production company, OQ Exploration and Production SAOG ('OQEP'), which was listed on the Muscat Stock Exchange in October 2024, has announced its financial results for the fiscal year that ended December 31, 2024. The financial results for the year demonstrate OQEP's continued ability to generate strong and predictable cash flows from its high-quality asset base. The company achieved an EBITDA of RO 614 million. Revenues totalled RO 841 million ($2,188 million), generating an earnings before interest, taxes, depreciation, and amortization (EBITDA) of RO 614 million ($1,596 million). Free cash flow stood at RO 251 million ($654 million). Ahmed al Azkawi, Chief Executive Officer, OQEP, commented: 'OQEP has delivered a strong set of results for the year, built upon our position as a low-cost operator of high-quality assets, generating industry-leading returns. During the year, OQEP listed its shares on the Muscat Stock Exchange. The Offer generated strong investor demand and raised RO 780 million. As part of our strategy to deliver shareholder value, we announced a planned return of capital in the form of dividends, with a target base dividend of RO 230 million for 2025 and 2026, subject to company performance and Board approval. The proposed return of capital can also be enhanced with a performance dividend. 'We continue to be the partner of choice for the Omani Government and many IOCs who partner with us to develop Oman's energy resources. Our location and our mix of products means that OQEP is well placed to meet the oil demand, and increasingly gas, to the global market. 'We continue to develop our assets in line with our strategy. We increased the reserves of our key asset, Block 60, through improved recovery techniques, including infill drilling, and new discoveries. We are also discussing with our partners the opportunities to unlock further growth across our portfolio, as well as pursuing new licensing opportunities. 'Our decarbonization strategy continues to be implemented successfully with Block 60 emission intensity already below the Oil and Gas Climate Initiative's target of 17kg CO2/boe at 14.33kg CO2/boe for 2024. OQEP continued to deliver sustainable cash generation from its assets during 2024. Revenue was supported by stable production levels during the year, with revenue attributable to gas increasing by 20% due to increased market demand. The reported figures for financial year 2024 were negatively affected by the sale of 40% of Block 60 in 2023. The 2023 full-year financials include 100% production from Block 60 and a resultant gain of RO 274.6 million on divestment. Excluding the impact of Block 60 divestment, the net profit for 2024 would have been 2.4% lower compared to 2023. In addition, a slight oil price decrease of USD 3.2/bbl in 2024 compared to 2023 further impacted the 2024 results. OQEP's dividend policy is linked to sustainable cash flow generation for its shareholders and is expected to comprise a base dividend of RO 230.7 million (USD 600 million) and a performance-linked dividend equal to 90% of the Company's expected free cash flow plus the net proceeds from any potential asset disposals, minus the base dividend. Dividend policy is subject to considerations, including the prevailing market conditions and the operating environment outlook for the Company's business. OQEP has already distributed an aggregate dividend of RO 173 million in 2024, and the Board of Directors has proposed an additional cash dividend of RO 57.68 million. Shareholders will receive a cash dividend of 7.21 Baizas per ordinary share. The proposed cash dividend is subject to formal approval of the Annual General Meeting of shareholders, scheduled to be held on 12 March 2025. OQEP has a high-quality portfolio of fourteen upstream oil and gas assets in Oman. These assets range from those in the development and production phase to others being appraised for commerciality or undergoing exploration programmes. OQEP either operates these assets or acts as a participant or non-operator alongside one or more joint venture partners. Of its fourteen assets, six are key producing assets. Block 60 is OQEP's flagship asset, an onshore contract area producing primarily oil, accounting for nearly 16% of OQEP's total working interest production in 2024. During the year, production strategies were carefully designed to maximize recovery while ensuring the long-term sustainability of Block 60's resources. Operating costs were carefully managed, achieving a cost per barrel of USD 5.94. Discoveries at North Gharif are expected to increase throughput for Block 60 in 2025. Other significant assets include Block 61, a non-associated gas and condensate asset, which contributed about 40% of the Company's working interest production in 2024. A Field Development Plan is being updated to evaluate the block's full potential recoverable gas resources for future growth projects. Block 10, a non-associated gas and condensate asset that started production in 2023, reached production target levels in July 2024. Block 9, an oil and gas asset, accounted for approximately 20% of the Company's working interest production. Seismic reinterpretation work was undertaken on Block 53, the largest thermal EOR (Enhanced Oil Recovery) project in the Middle East, paving the way for future exploration activities. Block 65, an oil and gas asset that has been operational since late 2022, continued to demonstrate production growth potential. OQEP retained its exploration assets in Blocks 48, 11 and 47 during the period. It also continued to operate its offshore production contract in Block 8; MGP, an oil and gas processing facility, which processes the production from Block 8 and is well positioned to service new oil and gas discoveries in the Musandam region; and two service agreements for producing areas in Block 6. The Marsa LNG Bunkering Project commenced construction in Sohar and is running according to the set budget and plan.
