Energy Development Oman receives positive inaugural ratings from S&P

MUSCAT, August 8: Energy Development Oman (EDO) has achieved a new milestone by being assigned a BB- long term issuer credit rating with stable outlook to the Omani company from S&P Global Ratings, which is the same as the Oman sovereign rating.

The international credit rating agency S&P’s stand-alone credit profile assessment of EDO is bbb- which is an investment grade rating level.

Mazin bin Rashid al Lamki (pictured), EDO’s Chief Executive Officer, commented: “This inaugural credit rating from S&P is a significant step ahead in EDO’s development and certainly self-assuring as it relates to EDO’s strategy going forward. In this report, S&P have recognised EDO’s access to sizeable reserves, leading domestic share of Omani hydrocarbon production, and low operating cost structure, all of which support strong credit ratios.”

Al Lamki added: “This rating will increase transparency and comparability for debt investors and other capital market participants. In addition to competitive financing and low-cost structure. EDO’s future strategic plans and cash flow visibility are key factors in our success, which brings significant importance to the country.”

“This national responsibility will influence our strategic choices and will guide our decisions at EDO which will benefit both the company’s and sovereign’s credit rating.”

EDO is leading ambitious plans in the fields of energy and alternative energy which will play a key role in elevating the credit rating of Oman and help create an attractive investment destination to invest in the Sultanate of Oman.

Established in December 2020 by Royal Decree 2020/128, EDO is focusing on realising efficiencies and pursuing new growth opportunities in Oman’s energy sector. EDO owns a 60 per cent interest in Block 6 concession and owns 60 per cent interest in Petroleum Development Oman (PDO), Oman’s most significant oil and gas operation, for oil, associated gas (AG) and AG condensate, and a 100 per cent interest in the Block 6 concession for non-associated gas (NAG) and NAG condensate.

EDO also owns 100 per cent interest in Hydrogen Development Oman (HDO) which is mandated to lead efforts in green hydrogen development in Oman including efforts to grow the sector in the country on behalf of the government.

In 2021, Energy Development Oman generated $11.5 billion of revenue, as well as $7.5 billion in the S&P Global Ratings-adjusted EBITDA.