Oman's OQGN awards EPC contract for $273mln Fahud - Suhar Loop Line project
OQ Gas Networks (OQGN), Oman's sole gas transmission operator and owner, announced on Wednesday that it has awarded Engineering, Procurement, and Construction (EPC) contract for the new 42 inch, 193-kilometre (km) loop line from Fahud to Suhar to Egypt-headquartered Petrojet.
The agreement for the Fahud - Suhar Loop Line project was signed on 17 June 2025, the MSX-listed company said in a stock exchange statement.
The statement said OQGN also awarded the supply of 193-km of line pipes to Jindal SAW.
The project, which is estimated to cost 105 million Omani riyals ($273 million), is scheduled to be completed in 24 months, the statement noted.
According to the statement, the project cost will be included in the Company's Regulated Asset Base (RAB), and, like the rest of the RAB, the return on this investment will be determined based on the Weighted Average Cost of Capital (WACC). The currently approved WACC in Price Control 3 is 7.79 percent and will remain in effect until 2027.
In November 2024, Zawya Projects had reported that OQGN secured approval from relevant authorities for the execution of a second loop line from Fahud to Sohar.
(Reporting by Deva Palanisamy; Editing by Anoop Menon)
(anoop.menon@lseg.com)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
an hour ago
- Zawya
Oman: Freehold ownership to drive SEZ investment
MUSCAT - The opportunity for foreigners to own residential property on a freehold basis in Oman's Special Economic Zones (SEZs) and Free Zones is expected to significantly enhance the investment appeal of the Sultanate's expanding portfolio of industrial and economic hubs. This provision is a key feature of the Law of Special Economic Zones and Free Zones, promulgated under Royal Decree 38/2025 on April 7, 2025, and effective from April 14, 2025. Article 42 of the law, titled Land Allocation and Freehold Sale of Units, states: 'A real estate developer may sell the units of these projects to non-Omanis—whether they are natural or legal persons—as freehold, in the manner specified by the regulation.' An explanatory note published by the Public Authority for Special Economic Zones and Free Zones (OPAZ) clarifies that land for real estate development projects within SEZs is allocated through usufruct rights. However, under the new law, developers may sell residential units within these projects to non-Omanis on a freehold basis. 'It permits real estate developers to sell project units to non-Omanis under the freehold system, a legal framework that allows buyers to fully and permanently own property without restrictions on the ownership period. In other words, individuals possess absolute ownership of the property and may dispose of it in accordance with the regulations set forth by the Authority,' OPAZ stated. 'This type of ownership presents an attractive option for investors and buyers seeking long-term stability and permanent property ownership,' the Authority emphasized. Until now, freehold property ownership for foreigners was limited to Integrated Tourism Complexes (ITCs)—zones designated by the Ministry of Heritage and Tourism. As of mid-2023, around 19 ITCs were operational or under development across Oman, offering thousands of residential units for foreign investment. In March 2025, the Ministry announced that 13 additional ITCs are under development, with a further 12 in the pipeline, as part of efforts to strengthen investment in Oman's growing tourism sector. With the extension of freehold ownership rights to SEZs and Free Zones, Oman is poised for a surge in foreign investment in residential real estate, particularly in high-growth industrial and logistics hubs. OPAZ currently manages an extensive portfolio of 23 investment zones, comprising SEZs, free zones, industrial cities, economic cities, an airport free zone, and a dedicated IT park. Several more developments are in early planning or construction stages, aligning with Oman's national drive for economic diversification, industrial resilience, job creation, and foreign direct investment (FDI) attraction. As of end-2024, the total volume of investments in OPAZ-managed assets rose by 10% to approximately RO 21 billion. The Special Economic Zone at Duqm (SEZAD) accounted for RO 6.3 billion, while free zones collectively attracted RO 6.6 billion. Meanwhile, industrial cities saw cumulative investments reaching RO 7.6 billion. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Zawya
2 hours ago
- Zawya
Ahlibank demonstrates market leadership in DCM with successful oversubscription of United Finance Company's senior bond issuance
Muscat: Reinforcing its position as a leading player in the Sultanate of Oman's debt capital markets (DCM), ahlibank has successfully acted as Issue Manager for the OMR 15 million senior bond issuance by United Finance Company (UFC), comprising a base issue of OMR 10 million and a fully exercised greenshoe option of OMR 5 million. The transaction had a novel structure of being the first senior bond issuance by a Finance and Leasing Company (FLC) in recent years. This structure enabled the three-year issuance to price competitively at a coupon of 7.00% pa. Commenting on the success, Hanaa Al Kharusi, Senior General Manager, Wholesale Banking at ahlibank said, 'We continue to remain the #1 issue manager for fixed income issuance for private issuers on the Muscat Stock Exchange. At ahlibank, we remain committed to empowering Omani corporates through bespoke capital-raising strategies that are both efficient and market-responsive. The successful execution of this bond issuance underscores our advisory strength, our distribution expertise, and our ability to navigate market dynamics with precision, positioning ahlibank as a trusted partner in accelerating corporate growth through capital market access.' The issuance garnered robust investor interest with total demand of OMR 17.2 million, reflecting a 1.7x oversubscription underscoring ahlibank's capability in structuring and delivering high-impact capital market transactions. The private placement received over 60 applications, representing the highest level of investor participation for any comparable corporate bond issuance in recent years. This issuance was ahlibank's fourth bonds issuance in the FLC sector with all four issuances achieving oversubscription. The strong momentum surrounding the offering illustrates growing market confidence—not only in the issuer, but also in ahlibank's execution expertise and market-readiness. Notably, the transaction drew a well-diversified investor base, with participation from high net worth individuals, banks, government entities, corporates and asset managers. The diversity of this participation is a direct reflection of ahlibank's ability to deliver well-structured investment opportunities that resonate across stakeholder segments. Meanwhile, the depth of engagement reaffirms the bank's standing as a trusted financial intermediary within Oman's evolving capital markets landscape. The successful closure of this issuance further solidifies ahlibank's position in the investment banking space, reinforcing its long-term strategic objective of diversifying revenue streams and deepening its leadership in Oman's capital markets. Beyond its institutional significance, the transaction also serves as a market catalyst, demonstrating the viability of capital market instruments as an effective financing avenue for corporates, particularly those within the non-bank financial sector. As ahlibank continues to strengthen its investment banking capabilities, the bank remains committed to fostering a resilient, innovation-led capital market ecosystem that contributes meaningfully to Oman's long-term economic diversification agenda.
Zawya
13 hours ago
- Zawya
Oman's OQGN awards EPC contract for $273mln Fahud - Suhar Loop Line project
OQ Gas Networks (OQGN), Oman's sole gas transmission operator and owner, announced on Wednesday that it has awarded Engineering, Procurement, and Construction (EPC) contract for the new 42 inch, 193-kilometre (km) loop line from Fahud to Suhar to Egypt-headquartered Petrojet. The agreement for the Fahud - Suhar Loop Line project was signed on 17 June 2025, the MSX-listed company said in a stock exchange statement. The statement said OQGN also awarded the supply of 193-km of line pipes to Jindal SAW. The project, which is estimated to cost 105 million Omani riyals ($273 million), is scheduled to be completed in 24 months, the statement noted. According to the statement, the project cost will be included in the Company's Regulated Asset Base (RAB), and, like the rest of the RAB, the return on this investment will be determined based on the Weighted Average Cost of Capital (WACC). The currently approved WACC in Price Control 3 is 7.79 percent and will remain in effect until 2027. In November 2024, Zawya Projects had reported that OQGN secured approval from relevant authorities for the execution of a second loop line from Fahud to Sohar. (Reporting by Deva Palanisamy; Editing by Anoop Menon) (
