EDO contributed 22% of Oman’s GDP by the end of 2023

Muscat: The annual income of Energy Development Oman (EDO) amounts to OMR6.3 billion (USD 16.4 billion) and the company’s contribution to the gross domestic product (GDP) amounted to 22% by the end of 2023.

As Standard & Poor’s has upgraded the long -term sovereign credit rating of the Sultanate of Oman for both the local and foreign currency from ‘BB+’ to ‘BBB-’ with stable outlook, based on which the general credit rating of EDO is amended to keep abreast with the sovereign rating.

Sultan bin Ali Al Mamari, Chief Financial Officer (CFO) of Energy Development Oman said that the upgrading of the credit rating to BBB- , would enable EDO to finance its investment programme at competitive rates and would expand the investors’ base on the issuance of bonds.

He said that Energy Development Oman plays a pivotal role in the Sultanate’s government strategy in terms of boosting the financial stability, which in turn enhances the efforts accorded for improvement of credit rating.

The financial results of EDO for the first half of 2024 were positive, wherein the company’s income stood at OMR3.2 billion by end of June 2024.

The company’s investment programme stands at OMR1.5 billion, he said, pointing to investments that are allocated to the company’s share in Block 6 at 60% in the field of oil and 100% in the field of gas.

He said that the daily production at Block 6 amounts to 674, 000 barrels compared to 651, 000 barrels during the same period of last year coupled with 83, 000 barrels of oil condensates.

Azhar bin Ahmed A Kindi, Chief Operation Officer (COO) at EDO said that the company is heading with various initiatives aimed at upgrading the operation efficiency to decrease the cost of production.

The company through Petroleum Development Oman (PDO) plays a vital role in executing many community initiatives aimed to support the local communities and boost the national initiatives, which reflects the company’s commitment to enhancement of sustainable development.

It is worth mentioning that EDO is a government-owned company and holds 60% of the stocks in the oil concession ( Block 6) and 100% shares in the non-accompanying gas concession ( Block 6) and 100 % shares in Hydrogen Oman ( Hydrom) -----ONA