Oman’s Ministry of Finance (MoF) has issued a decision to establish an Integrated Gas Company (IGC) to manage all-natural gas assets, including exports and imports of the commodity and its derivative products.
According to the statement, “The MoF issued a decision to establish an Integrated Gas Company and approve its articles of association and financial bylaw in accordance with the provisions of the Commercial Companies Law No. 18/2019 and its amendments, the Privatization Law issued by Royal Decree No. 51/2019, and Royal Decree No. 80/1998 issued regarding the Capital Market Law and its amendments.”
The Ministry of Finance explained that IGC is a state-owned enterprise. The IGC will act on behalf of the Government of Oman in the management of all allocations, assets, rights, and obligations of natural gas purchase, sales, transport, imports, and exports, as well as all relevant products.
The ministry said that the IGC is entrusted with improving the fiscal performance of Oman by removing the expenses of gas purchase and transport from the State Budget, while at the same time transferring net gas revenue to the treasury.
Further, the new company will also enhance the efficiency of the gas sector, and ensure the adherence of producers and consumers to the contracts and agreements signed in the gas sector.
It will also implement the government’s policies and plans related to gas prices and quotas allocated to each sector and undertake the selling of gas to gas-based industries.
Oman, the largest non-OPEC producer in the Middle East, expects a budget deficit of $345 million (1.3 billion rials) in 2023, or 3 percent of its gross domestic product, after an initial forecast of a budget surplus for 2022, the MoF said in a report last week.