Bank Nizwa SAOG has signed an agreement to arrange a structured Shari’a compliant financing facility totaling USD 150 Million to South Sea Energy Pte Ltd (SSE) for a development and production project in Block 17 in the Governorate of Musandam. This first of its-kind agreement with a fully-fledged Islamic bank, reaffirms the growing role of Shari’a-compliant solutions in the Oil and Gas sector in Oman.
The move comes as the Sultanate continues to open its doors to many international exploration firms in order to boost oil & gas production. SSE is one of the key partners in the Joint Venture PetroTel Oman LLC (PetroTel), operator of the 2,378 sq km on-shore Block 17. With its international expertise in the oil & gas industry, the company is gearing up to finding further untapped reserves in Musandam.
The agreement was signed by Dr. Jamil El Jaroudi, CEO of Bank Nizwa, and Datuk Seri Mahmud Abu Bekir Taib, Executive vice president of South Sea Energy Pte. Ltd, in presence of His Excellency Tun Pehin Sri Haji Abdul Taib bin Mahmud. Bank Nizwa will be responsible for advising and structuring the financing for South Sea Energy Pte. Ltd.
Commenting on the signing, Dr. Jamil El Jaroudi, said, “This agreement demonstrates our strength and capability in supporting the growth of key sectors in Oman. As the trusted partner for SSE, we will be exploring various financing avenues to raise the necessary funds for this mega-project in Block 17. Acting as intermediaries and consultants, we will also be sharing insights on the local industries, regulations and processes to ensure a seamless and rewarding project management and implementation.”
Since inception, Bank Nizwa has been involved in several project finance deals. This latest agreement cements the bank’s commitment to raising its corporate and commercial client portfolio. The Bank’s Investment Banking and Corporate Banking Division serves the needs of the government sector, government-owned entities, corporate and commercial clients, as well as small-and-medium-enterprises.