Latest news with #LendersReliabilityTest
Zawya
17-04-2025
- Business
- Zawya
OIA contributes to improving Oman's credit rating
Muscat: Oman Investment Authority (OIA) contributed in the Sultanate of Oman's successful improvement of its credit rating. This is reflected in Standard and Poor's latest report issued in March 2025 which affirmed Oman's BBB- credit rating with a positive outlook. Oman Investment Authority undertook a key role in achieving this milestone by implementing governance and debt reduction measures on its local companies. OIA managed to reduce the debt of its subsidiaries from OMR11.4 billion in 2021 to OMR9.2 billion by the end of Q3 2024. One of the most notable examples is OQ Group – which saw a significant improvement in its credit rating, leading to a reduction in its net debt to profits ratio and strengthening its financial and operational sustainability. In addition, Duqm Refinery and Petrochemical Industries Company (OQ8) successfully passed the Lenders Reliability Test (LRT) just recently, which enabled it to unlock over RO 800 million in shareholder guarantees. Moreover, OIA worked on renegotiating loan terms with banks to make them more cost-effective and flexible. Additionally, to enhance financial governance and the independence of its subsidiaries, OIA took steps to reduce government guarantees on loans for major companies such as OQ, Asyad, and Nama. The total value of these guarantees was lowered from OMR3.2 billion in 2021 to OMR1.8 billion in 2024, and new government guarantees on loans were completely halted. This strategic shift reduced financial risks for the government and encouraged companies to rely on their own investment capabilities to fund new projects. In February 2022, OIA introduced its Code of Governance for OIA Entities, aiming to regulate debt management and ensure adherence to transparent financial standards. This framework organizes investment activities and loan management, enhances financial and operational performance, aligns corporate plans with sustainable development goals, achieves balance between economic and strategic objectives, and promotes efficient use of resources. Furthermore, OIA has worked to enhance transparency by requiring companies to disclose financial performance data, which builds trust with credit rating agencies and international financial institutions. Additionally, through strategic partnerships, OIA has attracted foreign investments into key local sectors, strengthening foreign currency reserves. These initiatives reflect OIA's commitment to achieving the goals of Oman Vision 2040 by reinforcing trust in the Omani economy, contributing to building a strong and sustainable economic future, and positioning the Sultanate of Oman as a trusted investment destination. © Muscat Media Group Provided by SyndiGate Media Inc. (
Zawya
17-04-2025
- Business
- Zawya
Oman credit outlook strengthens as OIA reforms drive financial resilience
MUSCAT, Oman/PRNewswire/ -- The Sultanate of Oman's recent credit rating affirmation at BBB- with a positive outlook by Standard & Poor's (March 2025) reflects the government's effective fiscal consolidation efforts and improved economic management. A key contributor to this achievement is Oman Investment Authority (OIA), the country's sovereign wealth fund, which since assuming oversight of state-owned companies under the National Development Fund in 2020, has implemented robust governance reforms and targeted debt reduction strategies. These measures strengthened the financial positions of portfolio companies, directly contributing to Oman's enhanced credit profile and overall financial resilience. OIA successfully reduced the aggerate debt of its subsidiaries from USD 29.64 billion in 2021 to USD 23.92 billion by the end of Q3 2024. A notable example is OQ Group, Oman's integrated energy company, which achieved a credit rating upgrade that led to a marked improvement in its net debt-to-profit ratio, enhancing both its financial efficiency and long-term sustainability. In parallel, OIA renegotiated loan terms with banking partners to secure more cost-effective and flexible financing structures, further reinforcing the operational resilience of its portfolio. OIA also significantly reduced reliance on government guarantees to enhance the financial independence and governance of its key subsidiaries. Guarantees extended to major companies such as OQ Group, Asyad Group, Oman's logistics provider, and Nama, Oman's primary provider of electricity, water and wastewater services, were reduced from USD 8.32 billion in 2021 to USD 4.68 billion by 2024, with no new guarantees issued since. In addition, Duqm Refinery and Petrochemical Industries Company (OQ8) recently passed the Lenders Reliability Test (LRT) enabling it to unlock over USD 2 billion in shareholder guarantees. This decisive shift has lowered fiscal risk for the government and signaled a new era of accountability, encouraging companies to leverage their own financial strength and drive future growth. OIA has also further strengthened transparency across its portfolio by mandating financial performance disclosure across its portfolio. Simultaneously, strategic partnerships have attracted foreign investment into priority sectors, contributing to stronger foreign currency reserves. These collective initiatives demonstrate OIA's commitment to Oman Vision 2040 by reinforcing confidence in the Omani economy and supporting long-term sustainability. They also position the Sultanate of Oman as a trusted and competitive investment destination. Photo - Contact: Al Yaqdhan Ali Al Abri Senior Officer - Strategic Communication Tel: +968 24745659 SOURCE Oman Investment Authority
Times of Oman
16-04-2025
- Business
- Times of Oman
OIA contributes to improving Oman's credit rating
Muscat: Oman Investment Authority (OIA) contributed in the Sultanate of Oman's successful improvement of its credit rating. This is reflected in Standard and Poor's latest report issued in March 2025 which affirmed Oman's BBB- credit rating with a positive outlook. Oman Investment Authority undertook a key role in achieving this milestone by implementing governance and debt reduction measures on its local companies. OIA managed to reduce the debt of its subsidiaries from OMR11.4 billion in 2021 to OMR9.2 billion by the end of Q3 2024. One of the most notable examples is OQ Group – which saw a significant improvement in its credit rating, leading to a reduction in its net debt to profits ratio and strengthening its financial and operational sustainability. In addition, Duqm Refinery and Petrochemical Industries Company (OQ8) successfully passed the Lenders Reliability Test (LRT) just recently, which enabled it to unlock over RO 800 million in shareholder guarantees. Moreover, OIA worked on renegotiating loan terms with banks to make them more cost-effective and flexible. Additionally, to enhance financial governance and the independence of its subsidiaries, OIA took steps to reduce government guarantees on loans for major companies such as OQ, Asyad, and Nama. The total value of these guarantees was lowered from OMR3.2 billion in 2021 to OMR1.8 billion in 2024, and new government guarantees on loans were completely halted. This strategic shift reduced financial risks for the government and encouraged companies to rely on their own investment capabilities to fund new projects. In February 2022, OIA introduced its Code of Governance for OIA Entities, aiming to regulate debt management and ensure adherence to transparent financial standards. This framework organizes investment activities and loan management, enhances financial and operational performance, aligns corporate plans with sustainable development goals, achieves balance between economic and strategic objectives, and promotes efficient use of resources. Furthermore, OIA has worked to enhance transparency by requiring companies to disclose financial performance data, which builds trust with credit rating agencies and international financial institutions. Additionally, through strategic partnerships, OIA has attracted foreign investments into key local sectors, strengthening foreign currency reserves.
Observer
13-04-2025
- Business
- Observer
OQ8 completes LRT, unlocking $4 billion in shareholder guarantees
MUSCAT: Duqm Refinery and Petrochemical Industries Company (OQ8), a strategic joint venture between OQ in Oman and Kuwait Petroleum International (KPI), has completed the Lenders Reliability Test (LRT), marking a major milestone in its operational journey. This achievement fulfills all lender requirements and establishes the Actual Completion Date (ACD), unlocking approx RO 1.54 billion ($4 billion). The successful completion of the LRT, a rigorous performance assessment mandated by project financiers, confirms the refinery's ability to operate at or above its agreed capacity, efficiency, and reliability thresholds over a sustained period. With ACD now secured, OQ8 has fully met its contractual obligations, seamlessly transitioning into stable commercial operations. David Bird, CEO of OQ8, highlighted the significance of this moment: "The successful completion of the Lenders Reliability Test and achievement of our Actual Completion Date marks a pivotal milestone in OQ8's journey. This validates our operational excellence and underscores the strength of our joint venture and the trust of our stakeholders. As we transition into a new phase of growth, we are focused on leveraging this momentum to drive long-term value, advance strategic initiatives, and strengthen Oman's role as a leading energy hub in the global market." Duqm Refinery, located in the Al Wusta region on Oman's southeast coast, has exceeded 110% of its nameplate capacity, boosting output from 230,000 barrels per day (bpd) to 255,000 bpd. The facility reached full operational status within 10 months of completing mechanical works, the company said. Mubarak al Naamany, Chief Financial and Commercial Officer of OQ8, said the project's progress strengthens the joint venture's ambition to establish Duqm as a regional refining and petrochemicals hub, aligned with Oman Vision 2040. Azzan al Abdullatif, Chief Portfolio Officer at OQ, added that the refinery is helping position Oman as a growing energy center in the region. 'Clearing the reliability test underlines the project's strategic importance and enhances its appeal to global markets,' he said. Chief Executive Officer of Kuwait Petroleum International (KPI) Shafi Taleb al Ajmi said the completion milestone confirms the refinery's technical strength, calling it 'one of the most advanced refining facilities globally.' Duqm is the first independent commercial refinery in the Middle East. The plant is designed to process a variety of crude grades, including Basra Heavy and West African blends, which allows it to optimize supply and improve efficiency. The company said it operated at 100% utilization throughout 2024, exporting more than 4.1 million tonnes of refined products globally. Feedstock strategies have also helped reduce dependence on shareholder crude, enhancing commercial flexibility and profitability. Duqm Refinery is also investing in sustainability and innovation. Since 2018, it has spent over $2 billion on local suppliers and allocated more than RO 2 million ($5.4 million) to social development programs. It said these efforts support Oman's broader environmental and economic goals.
Zawya
10-04-2025
- Business
- Zawya
Oman: OQ8 successfully completes Lenders Reliability Test, unlocking $4bln in shareholder guarantees
Muscat: Duqm Refinery and Petrochemical Industries Company (OQ8), a strategic joint venture between OQ in Oman and Kuwait Petroleum International (KPI), has successfully completed the Lenders Reliability Test (LRT), marking a major milestone in its operational journey. This achievement fulfills all lender requirements and establishes the Actual Completion Date (ACD), unlocking over $4 billion in shareholder guarantees. The successful completion of the LRT, a rigorous performance assessment mandated by project financiers, confirms the refinery's ability to operate at or above its agreed capacity, efficiency, and reliability thresholds over a sustained period. With ACD now secured, OQ8 has fully met its contractual obligations, seamlessly transitioning into stable commercial operations. David Bird, CEO of OQ8, highlighted the significance of this moment: 'The successful completion of the Lenders Reliability Test and achievement of our Actual Completion Date marks a pivotal milestone in OQ8's journey. This validates our operational excellence and underscores the strength of our joint venture and the trust of our stakeholders. As we transition into a new phase of growth, we are focused on leveraging this momentum to drive long-term value, advance strategic initiatives, and strengthen Oman's role as a leading energy hub in the global market.' OQ8 has rapidly scaled up its operations, achieving 110% of its nameplate capacity and increasing production from 230,000 to 255,000 barrels per day. Within just 10 months of mechanical completion, the refinery has successfully transitioned to full-scale operations, underscoring its efficiency and reliability. 'As we move forward, our focus remains on optimising financial performance and maintaining strong governance. We appreciate the continued trust and support from our lenders, shareholders, and partners, who have played a key role in our journey,' said Mubarak Al Naamani, Chief Financial and Commercial Officer at OQ8. This underscores the strength of the partnership between OQ and KPI, cementing OQ8's evolution into a leading regional energy player. With full operational stability, the company is well-positioned to explore new growth opportunities, further contributing to Oman's energy sector and long-term economic development in line with Oman Vision 2040. In this regard, Azzan Al Abdullatif, Chief Portfolio Officer at OQ, stated: 'Our partnership with Kuwait Petroleum International underscores the strength of regional collaboration and the growing strategic role of Oman as a global energy hub. Successfully passing the lenders' reliability test affirms the project's strategic importance to the region's energy landscape and underscores the company's commitment to driving strategic growth and delivering exceptional results.' Eng. Shafi Taleb Al Ajmi, Kuwait Petroleum International President and CEO 'Achieving the ACD is a clear signal of our operational readiness and technical capabilities, placing OQ8 among the most advanced refineries globally. Securing this reinforces our confidence in OQ8's growth potential and commitment to pioneering new possibilities in the refining industry.' As the first merchant refinery in the Middle East, OQ8 demonstrates remarkable flexibility, processing a diverse range of crude and feedstocks—including Basra Heavy and West African crude—to enhance sourcing options and optimise production. Maintaining a 100% operational rate throughout 2024, the refinery has exported over 4.1 million tons of refined products globally. Additionally, its advanced feedstock strategies have reduced reliance on shareholder crude, improving commercial agility and profitability. Beyond operational excellence, OQ8 is committed to innovation and sustainability, leveraging cutting-edge technology to enhance efficiency and minimise environmental impact. The refinery plays a key role in advancing national sustainability goals, with significant contributions to Oman's economic and social development. Since 2018, the company has invested over $2 billion in local suppliers and dedicated $5.4 million to social initiatives, reinforcing its commitment to long-term national growth and prosperity. © Muscat Media Group Provided by SyndiGate Media Inc. (
