OPIC Approves Financing and Insurance for Texas Energy Company to Develop Oil and Gas Fields in Oman
February 27, 2019
- Project will create jobs and advance development in Musandam, Oman.
- Investment strengthens U.S. business presence in a region critical to American foreign policy
WASHINGTON – The Overseas Private Investment Corporation (OPIC) has approved financing and insurance to PetroTel of Plano, Texas to support development of oil and gas in a developing region of Oman. OPIC, the U.S. Government’s development finance institution, has approved $300 million of financing to support the development of oil and gas fields in Oman’s Musandam peninsula, along with $150 million of insurance for the project. PetroTel Inc. is best known for its leadership in oil and gas technologies and has worked in over 30 countries and on over 300 fields worldwide. The financing and insurance will help PetroTel transform into a major oil and gas producer.
“This project extends OPIC’s long history of helping American businesses invest in emerging markets and regions that are critical to American foreign policy. It speaks to the enormous contribution American businesses can make around the world, helping countries build critical infrastructure and develop their national resources,” said OPIC President and CEO Ray W. Washburne.
“The United States and Oman have enjoyed a productive diplomatic relationship for over 200 years. By helping to create jobs and maintain stability in the region, this project will help advance that relationship,” Washburne said.
PetroTel will develop the Musandam oil and gas fields, build facilities, and construct a three-kilometer onshore pipeline to the Musandam Gas Processing Plant. The oil produced will be sold to international markets using an offshore loading terminal, and gas will support the Musandam Independent Power Project, a 120 MW power plant that was inaugurated in 2017. Because Musandam is geographically isolated from the rest of Oman and the local economy is still in the developmental stage, this project will have a significant development impact, expanding access to power and replacing small diesel generators that are used across the region. The additional power will also support local industries, including tourism which is critical to the local economy.
“PetroTel has been active on this project for over a decade and was the first company ever to drill an onshore well in Musandam. We are bringing state-of-the-art American technology to this project and look forward to contributing significantly to the socio-economic growth and development in this region. We are thankful to the Government of Oman for this great opportunity. Now, with financing from OPIC, we can build on the foundation we have laid over the last decade. This project will nurture and strengthen the strong friendship between Oman and the United States of America,” said Chairman and CEO of PetroTel, Dr. Anil Chopra.
PetroTel is expected to hire hundreds of local workers on this project. OPIC’s review of the project also forecasts significant macroeconomic benefits to Oman, including about $60 million per year in the procurement of local goods and services. PetroTel will also make contributions towards schools, medical clinics and other facilities in the region that will benefit the local community.
The Overseas Private Investment Corporation (OPIC) is a self-sustaining U.S. Government agency that helps American businesses invest in emerging markets. Established in 1971, OPIC provides businesses with the tools to manage the risks associated with foreign direct investment, fosters economic development in emerging market countries, and advances U.S. foreign policy and national security priorities. OPIC helps American businesses gain footholds in new markets, catalyzes new revenues and contributes to jobs and growth opportunities both at home and abroad. OPIC fulfills its mission by providing businesses with financing, political risk insurance, advocacy and by partnering with private equity fund managers.
OPIC services are available to new and expanding businesses planning to invest in more than 160 countries worldwide. Because OPIC charges market-based fees for its products, it operates on a self-sustaining basis at no net cost to taxpayers. All OPIC projects must adhere to best international practices and cannot cause job loss in the United States.