Oman’s Ministry of Finance has announced the foundation of 100% government-owned Energy Development Oman (EDO) Company with the purpose of transferring government stake in Concession Area 6 to EDO.

The Ministry explained that the EDO will 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, reported Oman News Agency (ONA).

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 (Petroleum Development Oman) 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 in-country added value of petroleum activities.

Copyright 2020 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).

Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. Read our full disclaimer policy here.