Oman Transfers Ownership of Massive Block 6

Pump jack in Oman
Pump jacks in the desert of Oman
claffra/Getty Images/iStockphoto

The government of Oman has transferred its stake in one of the Middle East’s largest oil blocks to a newly established firm. By royal decree, the new, state-controlled Energy Development Oman (EDO) will hold the country’s 60% stake in Block 6. The stake was moved from Petroleum Development Oman (PDO), another government-run company.

Oman, which is struggling under a soaring budget deficit, is looking to finance its spending by leveraging its energy assets. Block 6 has a production capacity of 650,000 BOED.

Shell holds 34% in the block, while Total holds the remaining 4%.

The government appointed Haifa Al Khaifi as head of EDO in January. She joined from PDO and is also chairwoman of the Saudi Arabian unit of State Street Corp., the Boston-based custodian and money manager.

EDO will also be able to invest abroad and deal in renewable-energy products.