A new energy company is established in Oman this week. The new state-owned energy company – Energy Development Oman – has a mandate to invest in conventional as well as renewable and alternative energy resources within and outside the sultanate.
The new joint stock company will own a shareholding in Petroleum Development Oman (PDO) and an interest in the sultanate’s largest oil concession Block 6. The company can also borrow or raise money.
The authorised and issued share capital of the company is RO500,000, divided into five hundred thousand shares with nominal valve of RO1 each.
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’, according to the Royal Decree No 128/2020, issued in the official gazette last Sunday.
The mandate
As per the Royal Decree, Energy Development Oman would also undertake any other projects, operations and activities 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 projects, operations and activities directly or indirectly related to renewable energy in Oman.
The head-office 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.
Abilities and obligations
‘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’, it said.
