Muscat: The Ministry of Finance today said that Royal Decree No. 128/2020 provides for the foundation of Energy Development Oman (EDO) Company with the purpose of transferring government stake in Concession Area 6 to EDO.

The Ministry explained that EDO is a 100 per cent government-owned firm established to achieve a set of government objectives through the implementation of global standards in the management of assets and resources of the State in the oil and gas sector.

The new company will receive oil and gas revenues to settle annual capital and operational costs of production.

It will also develop and expand the sector and pump more investments to bolster financial and economic returns of the state, thereby keeping PDO oil and gas expenses out of the general budget, which will enable the company to enjoy financial independence.

In this way, EDO can fund its own economically feasible development projects and reflect the actual value of this sector, which will have a positive effect on indicators of financial performance. It will also reflect positively on PDO, allowing it to carry out investment projects without dependence on the State Budget.

EDO is expected to upgrade the performance of management of the oil and gas sector, support government plans on cost-cutting and increasing economic activity, as well as the in-country added value of petroleum activities.