Tethys Oil signs $60m loan agreement to support Oman operations
Published: 04:08 PM,Aug 02,2024 | EDITED : 07:08 PM,Aug 02,2024
Oman Blocks 3 & 4
MUSCAT: Swedish-based oil and gas firm Tethys Oil, through the Group subsidiary Tethys Oil Block 3 & 4 Ltd, has signed an agreement with Abu Dhabi Commercial Bank (UAE) for a 5-year $60 million a mortising term loan facility.
The purpose of the facility is to support capital expenditure for Blocks 3 & 4 in Oman, which also acts as the collateral for the loan.
The loan will comprise of a credit facility of up to $60 million with a 12-month availability period and a fixed amortisation schedule commencing nine months upon entering the agreement.
The primary use of funds is capital expenditure on Blocks 3 & 4 in Oman. The loans drawn under the facility are under current conditions expected to carry a single-digit interest, payable quarterly.
As part of the agreement Tethys Oil also commits to hedging at least 50 per cent of its interest rates and an average of 35 per cent of its oil sales. The loan is subject to customary covenants for this type of facility.
The facility ensures that Tethys Oil is fully funded and positioned to continue investing across its portfolio of assets in various stages of maturity and provides Tethys Oil’s Board of Directors additional flexibility and optionality in the Group’s ongoing strategic review.
ADCB is one of the UAE’s leading financial institutions, based in Abu Dhabi.
The transaction was arranged by Carlingford, a division of GFI Securities.
Carlingford are a UK-based leading independent corporate finance boutique, focused on raising finance and advising on transactions in upstream, energy transition, renewables and natural resources.
Tethys Oil’s core area of focus is the Sultanate of Oman, where it holds interests in Blocks 3 & 4, Block 49, Block 56 and Block 58.
Tethys Oil has net working interest 2P reserves of 21.7 mmbo and net working interest 2C Contingent Resources of 15.5 mmbo and had an average oil production of 8,818 barrels per day during 2023.
The purpose of the facility is to support capital expenditure for Blocks 3 & 4 in Oman, which also acts as the collateral for the loan.
The loan will comprise of a credit facility of up to $60 million with a 12-month availability period and a fixed amortisation schedule commencing nine months upon entering the agreement.
The primary use of funds is capital expenditure on Blocks 3 & 4 in Oman. The loans drawn under the facility are under current conditions expected to carry a single-digit interest, payable quarterly.
As part of the agreement Tethys Oil also commits to hedging at least 50 per cent of its interest rates and an average of 35 per cent of its oil sales. The loan is subject to customary covenants for this type of facility.
The facility ensures that Tethys Oil is fully funded and positioned to continue investing across its portfolio of assets in various stages of maturity and provides Tethys Oil’s Board of Directors additional flexibility and optionality in the Group’s ongoing strategic review.
ADCB is one of the UAE’s leading financial institutions, based in Abu Dhabi.
The transaction was arranged by Carlingford, a division of GFI Securities.
Carlingford are a UK-based leading independent corporate finance boutique, focused on raising finance and advising on transactions in upstream, energy transition, renewables and natural resources.
Tethys Oil’s core area of focus is the Sultanate of Oman, where it holds interests in Blocks 3 & 4, Block 49, Block 56 and Block 58.
Tethys Oil has net working interest 2P reserves of 21.7 mmbo and net working interest 2C Contingent Resources of 15.5 mmbo and had an average oil production of 8,818 barrels per day during 2023.