Bank Nizwa signs 50 million pact financing with Hydrocarbon Finder…

newsimageBank Nizwa has signed an agreement to provide a structured financing facility of $50 million to Hydrocarbon Finder, an independent Oil & Gas exploration & production company promoted by the Services and Trade Group (S&T Group). The Bank’s Shari’a-compliant package is tailored to meet the requirements of HCF, which has been granted concession rights by the Government of Oman for oil & gas exploration, development and production within an onshore geographical area in Oman termed as Block 7.

The Facilities agreement was signed by Dr. Jamil El Jaroudi, CEO of Bank Nizwa and Brig. Gen (Retd) Sulaiman al Adawi, Group Chairman of the S&T Group, in the presence of Sheikh Ahmed bin Saif al Rawahi, Deputy Chairman of Bank Nizwa on February 10th in Muscat. The signing ceremony was also attended by Waqas Al Adawi, Vice Chairman of S&T Group, and Rohit Walia, Executive Chairman of Alpen Capital, along with senior members from their respective teams.

Speaking at the ceremony, Dr Jamil El Jaroudi, Bank Nizwa CEO noted: “Our financing products have backed the growth of the Sultanate’s real estate and mining industries, and today, as a proven and trusted establishment, we are excited to add the oil & gas sector to our roaster of corporate clients. Our partnership with Hydrocarbon Finder LLC is a translation of Bank Nizwa’s commitment to diversify its portfolio and play a key role in spurring private sector growth, and contributing to Oman’s economic prosperity.”

Hydrocarbon Finder E&P LLC is part of the Services & Trade (S&T Group), a leading Oman based business conglomerate that has significant business interests in diverse sectors such as interior fit-out and contracting, information technology, healthcare, mining, FMCG, trading, and real estate across Oman and with established operating companies in GCC region, United Kingdom, Italy, India & Sri Lanka.

At the signing, S&T Group Chairman, Brig. Gen. (Retd) Suleiman Mohammed Yahya al Adawi remarked: “Hydrocarbon Finder LLC represents the S&T Group’s entry into upstream oil & gas. This deal is a very important business vertical for us and one which holds strong growth potential for the future. We are delighted with the support and commitment shown by Bank Nizwa towards our new venture and look forward to a long and mutually beneficial relationship with the bank. We also thank Alpen Capital for partnering with us and advising us on this important concession financing arrangement”.

In turn, Rohit Walia, Executive Chairman of Alpen Capital, LLC, Oman, the Financial Advisor to the S&T Group for this transaction, said: “We are glad to support Hydrocarbon Finder in this new and important business initiative. It is very gratifying to see that our Oman Team has been able to contribute towards development initiatives in the country and work with local businesses to support their needs.”. Reuters

Oman signs oil concession agreement for block 7…

signing4MUSCAT: Oman government on Thursday signed an oil concession agreement with Hydrocarbon Finder to take over an existing block on production sharing basis.

As per the agreement, Hydrocarbon Finder, a hundred per cent locally-owned independent oil producer, will take over block 7 from Petrogas for producing oil from the concession area. The concession area has a large area spanning around 2,331 kms in Al Wusta region.

news-signing “This is an existing field. The new company will ramp up production. It will drill more horizontal wells, which will depend on field development plan. They will foresee to ramp up (production) to 5,000 barrels per day,” Dr. Saleh Al Anboori, director general of management of petroleum investments at the Ministry of Oil and Gas, told journalists, after signing the concession pact.

The commitments of the company under this agreement include reinterpretation of the existing data, acquire 3D seismic surveys, conducts studies, provide operational support and drilling of several development and exploration wells.

The agreement was signed by Dr. Mohammed bin Hamed Al Rumhy, minister of oil and gas, and Suleiman Mohammed Yahya Al Adawi, chairman of Hydrocarbon Finder.

The agreement is for 15 years and the company will finalise field development plan in the initial three years. “The potential is high and the company will relook to revamp production.”