Muscat: Attesting to its robust financial leadership, Qalhat LNG has successfully repaid its loan facility obligation ahead of schedule, signalling a good credit mark for Omani firms, while saving interest costs.
Such a move is welcomed by the Omani economy as a positive outlook, and supports the government’s efforts in enhancing the investment climate in Oman, as a proactive debt payback by firms in the country indicates financial robustness.
Qalhat LNG, a company operating under Oman LNG, has been able to repay its loans earlier than expected to support reduced interest costs and further assure potential investors about the investment security of the country.
Dr Mohammed Al Rumhy, Minister of Oil and Gas, said, “The voluntary investment prepayment by Qalhat LNG to the lenders reflects a great confidence in the Omani economy, and reveals the resilience of the oil and gas industry in the Sultanate. The industry demonstrates the healthy investment environment of the country, like other economic industries and sectors.”
The story of Qalhat LNG repayment milestones started in 2005 and is one of many great achievements the company has witnessed since then. Firstly, the company completed the establishment of its production facility on time and under budget, adding to the cost savings and improved investment reputation. The following years enabled the company to voluntarily prepay its lenders and help provide investors increased confidence over the financial robustness of the company.
Salim Al Aufi, Undersecretary of Ministry of Oil and Gas and Chairman of Qalhat LNG, said, “The achievement of this prepayment is attributed to many success factors that have been associated with Qalhat LNG from its inception. The final achievement was one of several voluntary financial prepayment initiatives by Qalhat LNG to forge a resolute pathway towards paying all debts on time. These milestones were achieved even during financial challenging times amid the recent oil and gas downturn.”
Harib Al Kitani, Chief Executive Officer of Oman LNG and Qalhat LNG, said, “This achievement is a testament of our commitment to our lenders and has added more confidence over our financial robustness, and keenness to continue their relationship with Oman. In addition, we also expect to complete the repayment of the remaining debt of Oman LNG, also ahead of schedule. This will open a huge opportunity for more projects or expansion of this successful natural gas investment by the government and other shareholders.”
The final installment has rendered Qalhat LNG debt-free, managing to repay in full its obligations, without default, ahead of the target date. These efforts are aligned in increasing the credibility of the nation in providing assurance to investors world-wide that Oman is a safe haven for key investments. The efforts simultaneously further help the government’s ambitions to diversify the country’s economy and meet its 2040 vision through such healthy investment opportunities.