DFC agrees $300m financing for PetroTel's Oman project
US-based PetroTel has received $300 million financing from the US Development Finance Corporation (DFC) to build oil and gas fields on the southeastern coast of the Arabian Peninsula.
The company's development in Oman’s Musandam peninsula will include the construction of facilities and a 3km onshore gas pipeline to the neighbouring processing facilities. Together with the financing, DFC has provided PetroTel with political risk insurance.
The oil produced by the Oman fields will be sold to international markets via an offshore loading terminal, while the gas produced will be used to serve local needs, such as supplying the local power plant, and helping to replace diesel generators.
Linklaters acted as legal counsel to PetroTel on securing the financing.
