The facilities agreement was signed by Sulaiman Al Harthy, Deputy Chief Govt Officer – Meethaq Islamic Banking, and Brig. Gen. (Retd.) Sulaiman Al Adawi, Chairman of the S&T Group on behalf of Hydrocarbon Finder.
The signing ceremony was attended by Mohammed Al Jahwari, CEO and co-promoter of HCF; Ali Al Batrani, Exterior Affairs Director and co-promoter of HCF, Wadhah Al Adawi, Vice Chairman of HCF, along with senior officials of Meethaq and HCF.
“Meethaq is proud to be associated with Hydrocarbon Finder and congratulate the promoters for initiating this undertaking. Meethaq’s affiliation with the challenge comes as part of its dedication to spotlight funding alternatives in core growth sectors throughout the Sultanate. As the pioneer of Islamic banking in Oman, Meethaq recognises the immense investment prospects and potential that Oman presents and is dedicated to supporting strategic nationwide improvement initiatives consistent with Oman’s Imaginative and prescient 2040 economic blueprint. Within four years of operations, Meethaq has crossed a milestone of over OMR 1 billion in belongings and consolidated its management position, recording many achievements contributing to the growth and improvement of the Sultanate’s economy, stated Al Harthy.
HCF took over the operatorship of Block 7 in April 2016 under an Exploration and Manufacturing Sharing Settlement signed with the government of Sultanate of Oman. Since then, HCF undertook a low value, high yield development programme to revive production from the found fields within the Block and more than doubled the production inside a span of 18 months. Block 7 is located on the south Rub Al Khali (Empty Quarter) basin and has been producing hydrocarbons for the last three decades.
“S&T has at all times believed in diversification by way of a number of enterprise verticals in multiple geographies to mitigate the dangers of concentration. As a part of this diversification strategy, the Group ventured into the upstream oil and gas sector by means of Hydrocarbon Finder in 2015. The timing of coming into into the sector in a low worth environment meant that HCF is able to execute its improvement actions in a price efficient method. We’re extremely proud of the support and commitment shown by Meethaq Islamic Banking to HCF’s venture and look ahead to a long and mutually helpful relationship with the financial institution, stated Al Adawi.
HCF expects to add affordable volumes of incremental oil and gas reserves in due course. There are immense development opportunities in Block 7 and HCF is properly positioned to maximise the production of hydrocarbons from this block. HCF plans to triple the production from Block 7 within petrochemical Companies the brief-term. HCF intends to speculate as much as $160 million in direction of improvement activities in a phased manner. In addition to employment and business alternatives for a lot of residents and SMEs in Oman, HCF’s challenge may even contribute positively to authorities revenues from incremental oil production.
“With the low oil price atmosphere there is a renewed curiosity to develop matured fields utilizing the newest available technology to minimise dangers and maximise returns. HCF undertook this low price improvement model by investigating and reinstating the integrity of existing wells followed by aspect-monitoring of existing wells during the last 12 months. This has led to production contribution from beforehand unproduced reservoirs inside current fields of Block 7. This is to be adopted by an exploration marketing campaign targeting deeper horizons that have been producing in other components of Oman, stated Al Jahwari.