Swedish company secures $156m for Omani oil blocks  

Reuters

The Omani unit of Stockholm-headquartered Tethys Oil has secured funding from a UAE bank for its oil exploration blocks in the sultanate.

Tethys Oil Block 3&4 Limited secured a five-year OR60 ($156 million) loan facility from Abu Dhabi Commercial Bank to support capital expenditure for blocks 3 and 4 in Oman.

The loans drawn under the facility are expected to carry a single-digit interest rate, payable quarterly. However, the interest rate was not given.

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The facility will ensure that Tethys Oil is fully funded and can continue investing in its portfolio of assets at various maturity stages.

The Nasdaq Stockholm-listed company’s core area is the sultanate where it holds interests in Blocks 3 and 4, 49, 56 and 58.

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The announcement comes at a time when Oman’s total oil production declined by 5.3 percent year on year in the first half of 2024, according to a report by the Muscat Daily newspaper, citing data from the National Center for Statistics and Information (NCSI).

Average daily production in Oman was 842,700 barrels per day (bpd) in the first six months of 2024, down 20 percent year on year. However, in June daily production averaged 991,400 bpd.

Earlier this year, Oman, along with other Opec+ members, agreed to extend voluntary oil production cuts until the end of June this year.