Muscat: The Sultanate of Oman has received a significant financial upgrade as Standard & Poor’s (S&P) raised its long-term sovereign credit rating from “BB+” to “BBB-” for both local and foreign currencies, with a stable outlook. This reclassification brings Oman back into investment-grade territory, underscoring the nation’s improving financial stability. Alongside this, Oman Energy Development Company (OEDC) credit rating has been adjusted to align with the sovereign rating, further confirming the company’s vital role in the country’s fiscal strategy.

Eng. Sultan bin Ali Al Maamari, Chief Financial Officer of OEDC, highlighted that the rating boost would enable the company to secure better financing terms for its investment programs. The upgrade to ‘BBB-’ opens doors for OEDC to attract larger investor pools and secure financing at more competitive rates. This move is expected to enhance the company’s ability to attract investment for major oil and gas projects.

Al Maamari pointed out that OEDC’s total annual income reached RO 6.3 billion (USD 16.4 billion) in 2023, contributing 22% to Oman’s gross domestic product. The company’s first-half results for 2024 reflected strong performance, with total income hitting RO 3.2 billion (USD 8.2 billion). The investment program, worth RO 1.5 billion, is expected to stay on course, with allocations to the company’s share in Block 6, focusing on oil and gas sectors.

In addition, the company’s daily production from Block 6 rose to 674,000 barrels of oil, compared to 651,000 barrels in the previous year.

Chief Operating Officer Eng. Azhar bin Ahmed Al Kindi emphasized OEDC’s commitment to operational efficiency and community support through numerous initiatives. With Omanisation levels exceeding 80%, the company remains dedicated to developing local talent and driving sustainable development nationwide.

OEDC, fully owned by the Government of Oman, continues to steer the country’s energy sector forward, holding 60% of the oil and 100% of the gas concessions in Block 6.