Oman LNG Settles $2bln Loan in Advance

Oman Liquefied Natural Gas LLC has announced that it has successfully repaid its US$2 billion loan facility obligation ahead of schedule, saving interest costs.

According to Oman News Agency, the move is part of the company’s ongoing efforts to reduce financial costs and support Oman’s credit rating.

The agency quoted Dr Mohammed bin Hamad al Rumhi, Minister of Oil and Gas and chairman of Oman LNG, as saying: “The early repayment of the loan by Oman LNG demonstrates the financial robustness of the company and confidence in the oil and gas industry and Omani economy at large. Oil and gas industry provides a great investment opportunity like other sectors of the Omani economy.”

He added that Oman LNG has managed to repay its loan obligations in full, without default and ahead of schedule, hence rendering the company debt free.

Oman LNG project finance started in 1997 when lenders granted the company with a loan of US$2 billion. The financing of the project was regarded as one of the largest limited recourse financing arranged in the Middle East as the gas liquefaction project was the largest venture undertaken by the Sultanate at that time, with strategic importance to the national economy.