GULF Adjusts the Stake in Oman’s “Marafiq” to 49%, Expanding Business in Duqm SEZ

Gulf Energy Development Public Company Limited (GULF) has announced that the company has made changes in the shareholding percentage of DIPWP Project in Oman from holding 45% in the project to holding 49% of a subsidiary of a company which now holds 100% in DIPWP Project.

 

Reference is made to GULF’s notification to the Stock Exchange of Thailand on September 6, 2018 regarding its investment in gas-fired power project with total installed power generation capacity of 326 megawatts and an installed water generation capacity of 1,667 cubic meters per hour (DIPWP Project) located in Duqm Special Economic Zone (Duqm SEZ), Oman, with Centralised Utilities Company L.L.C. (Marafiq), a subsidiary of OQ SAOC (OQ) (formerly known as Oman Oil Company S.A.O.C.) with a shareholding percentage of 45% and 55%, respectively.

The DIPWP Project will generate and supply electricity and desalinated water to a large-scale refinery, namely the Duqm Refinery and Petrochemical Industrial Company L.L.C., a joint investment between OQ from Oman and Kuwait Petroleum International from Kuwait. The DIPWP Project is under construction and is expected to commence commercial operation between 2021 and 2022.

 

GULF foresees the opportunities to expand its business in Duqm SEZ, as Marafiq has the exclusive right to conduct power, water and gas businesses in Duqm SEZ for a period of 25 years with a 25-year additional term.

As such, GULF initiated negotiations with Marafiq to discuss a change in the shareholding structure in which Marafiq holds 100% of shares in DIPWP Project while GULF and OQ hold 49% and 51% of shares in Marafiq, respectively, in order to jointly develop utility services projects such as the generation and supply of electricity, water, steam, district cooling, waste water and sewerage collection and treatment, industrial waste management and waste incineration, natural gas and industrial gases. These projects have potential to support the increasing demand of the growing business cluster and is aligned with GULF’s business expansion plan.

 

GULF announced that on June 11, 2020, Gulf International Holding Pte. Ltd. (GIH), a subsidiary of the company, entered into a Shareholders’ Agreement with OQ to change the shareholding structure of DIPWP Project and acquire an additional stake in Marafiq to 49% as mentioned above, and is in the process of preparing to sign the Share Purchase Agreement. The transaction is subject to completion procedures with the relevant Omani authorities and GULF will promptly provide further notifications upon completion.