Oman’s Government-owned Oman Oil and ORPIC will merge their ‘downstream businesses’, effectively from 2nd December 2018.
This merger is intended to be phase one to integrate their entire businesses. The CEO of the combined company will be Musab Abdullah al Mahruqi, he was previously the CEO of ORPIC from April 2010-Dec 2016 and is currently on the Board of Directors with PDO, Oman’s Oil Exploration business.
Immediately prior to his appointment as CEO of the combined companies, he was Chairman of OXEA Chemicals (a subsidiary of Oman Oil in Germany).
Oman Oil includes subsidiaries Takamul Investment Company S.A.O.C, Oman Oil Company Exploration and Production, Oman Oil Facilities Development Company L.L.C, Oman Oil Duqm Development L.L.C, in addition to overseas companies. Oman Oil’s CEO Isam Al Zadjali’s role, if any, in the merged operations was not noted.
The Board of Directors of the two companies is identical (since 2017) and is chaired by Oman’s Minister of Oil and Gas Dr. Mohammed Al Rumhi.
Both companies have raised overseas loans and issued Bonds to finance development – ORPIC for at least $6.6 Billion (in 2014 & 2016) and Oman Oil (at least $3billion over the last few years as export finance, credit facility and debt tranche).
The companies are major employers in Oman and will, when fully merged, have a combined workforce of over 7,000.