Rex International Holding Limited, the Singapore-based Oilfields firm, is looking to monetise its Oman asset by achieving its first oil production by the end of this year, it said in a company statement. Rex, together with its subsidiaries, holds a 92.65% indirect stake in Masirah Oil Ltd, which holds 100% interest in Oman’s offshore,17,000sqkm Block 50 concession.
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In a filing to the Singapore Exchange, the company said that it was looking to put the GA South asset into production by end of this year, which will generate revenue, if successful. “The plan is to finance this mainly through off-balance sheet financing,” it said.
“The fiscal policy for exploration and production activities in Oman differs from Norway, where the cost pool spent in the Block 50 licence could be recouped upon production,” added the statement.
The GA South discovery was made in 2014 and is the first-ever offshore oil discovery east of Oman.
With a ‘war chest’ of about US$70.8 million comprising cash, cash equivalents and quoted investments as at June 30, 2019, Rex International has achieved a record net profit of US$26.29mn for the quarter ending June 30, 2019, propelled by the group’s sales of interests in Norway assets. The company remains long-term debt free as of June 30 this year and is buoyant about its prospects in Oman with Masirah Oil having more than US$100mn in its cost pool till date, it added.
Måns Lidgren, CEO – Rex International, was quoted as saying, “Although we achieved discoveries in Oman and Norway respectively, the monetisation strategy could not be executed during the oil price rout which started in 2014 until early this year when an opportunity to divest arose.”
