星期二, 九月 22, 2020
Home PV News Oman’s Flagship Solar Project Got Liquidated Due To Low Oil Prices

Oman’s Flagship Solar Project Got Liquidated Due To Low Oil Prices

Source:Oil Price

Oman has decided to liquidate a solar power company it funded together with Shell because of the persistent depression in oil prices, Reuters reports, citing Omani media.

The decision to liquidate GlassPoint Solar was taken last week, ending the ambition of Petroleum Development Oman and Shell to replace natural gas in enhanced oil recovery with solar power to produce steam that would then get injected into oil wells.

The company was in charge of the Miraah project in Oman: a 1.021 GW solar farm built at the Amal field in southern Oman. The project was estimated to have a cost of $600 million. The funding for GlassPoint Solar came in at $30 million from Petroleum Development Oman, Shell, and a group of private equity firms.

“We regret that GlassPoint Solar Inc has gone into liquidation at a time of considerable global business distress and uncertainty resulting from the COVID-19 pandemic,” Petroleum Development Oman said in a statement. The company had a 31-percent stake in GlassPoint Solar.

Oman is among the oil producers most vulnerable to oil price shocks, the International Monetary Fund said in February this year in an analysis on the resilience of Gulf state economies. That analysis, which focused on the long-term outlook of the region, predated the start of the global pandemic, which has certainly aggravated matters for those already vulnerable to low oil prices.

Moody’s also sees Oman as one of the most vulnerable oil producers in terms of credit profiles. Fitch Ratings also placed Oman among the oil producers, “where weaker balance sheets and policy buffers will limit governments’ capacity to respond to the oil price slump without putting pressure on their ratings.”

Oman’s break-even price – the oil price required to balance the government budget, all else being equal – is $82 a barrel Brent crude, according to Fitch Ratings.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

Apple data center in Denmark powered by 50 MW of solar

Apple has revealed that its data center in Viborg, Denmark, is now being powered by a 50 MW solar project under a long-term power...

Solar + storage experiment in Tampa Bay selected for Solar Energy Innovation Network project

An innovative solar + storage research project led by the Tampa Bay Regional Planning Council has been selected as a finalist for the Solar...

Chinese PV Industry Brief: 350 MW wind-solar project, 200 MW of floating PV

Longyuan Energy said this week that it has signed an agreement with the municipal authorities in Binzhou, Shandong province, to build 300 MW of solar...

IEEE creates education and credentialing program for interconnecting distributed resources to the grid

IEEE and the IEEE Standards Association (IEEE SA) announced the IEEE Std 1547-2018 Distributed Energy Resources (DER) Interconnection Commissioning: Education and Credentialing Program, a new...