(MENAFN- Muscat Daily) Alizz islamic bank signed a strategic financial agreement with Medco LLC (Oman) a subsidiary of PT Medco Energi Internasional Tbk or MedcoEnergi a leading Indonesian energy company with focus on exploration and production of oil and gas.
The bank provided MedcoEnergi a guarantee under the Islamic finance principle of kafalah favouring Petroleum Development Oman (PDO) for the Karim Small Field (KSF) project. Alizz islamic bank is the first bank to extend Islamic banking facilities to Medco a press release said.
The signing ceremony on Wednesday was attended by Salaam al Shaksy CEO of alizz islamic bank and Lukman Ahmad Mahfoedz president director and CEO of MedcoEnergi. The signing ceremony was also attended by Ehab Hashish DGM head of wholesale banking of alizz islamic bank and Faiz Shahab director of international E&P operation and new venture of MedcoEnergi alongside senior officials from PDO Intaj LLC Biyaq Oil LLC and Oman Oil Company Exploration & Production.
Commenting on the bank's support for a key segment of the sultanate's economy Shaksy said 'The sultanate's oil and gas industry continues to play a vital role as a key driver of the country's economic development. Through our superior Sharia'a-compliant financial solutions industry insight cutting-edge technology and commitment to pro-active customer service alizz islamic bank is well positioned to finance the energy sector in the country. We are looking forward to working with MedcoEnergi and contributing to their success.'
Mahfoedz said 'We are very pleased with this agreement that was done in a relatively short time as it demonstrates our continuous commitment in enhancing in-country value for Oman. We look forward to working together with alizz islamic not only for KSF but also for other opportunities in the future.
In January 2006 Medco won a tender for a ten-year service E&P contract (the first of its kind in Oman) whereby PDO outsourced an onshore field KSF to Medco as a third-party contract operator to operate on its behalf with the objective of arresting the rate of decline increasing production and exploiting the potential of the fields. In April this year Medco was granted another 25-year contract by PDO to operate KSF including exploration activity. KSF's current oil output is approximately 17000 barrels of oil per day.
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