Qatari company acquires stake in Oman’s biggest power project

By Staff Reporter — MUSCAT: Jan. 2: Doha-headquartered Nebras Power has entered into an agreement to acquire Qatar Electricity and Water Company’s (QEWC) stake in Phoenix Power Company, which owns and operates one of the largest Independent Power Projects (IPPs) at Sur in the Sharqiya South Governorate. The acquisition, expected to be completed in January 2016, covers OEWC’s 9.75 per cent stake in Phoenix Power and a 15 per cent stake in Phoenix Operating and Maintenance Company, which carries out the operation and maintenance activities of the plant.

The agreement was inked on behalf of QEWC by Fahad bin Hamad al Mohannadi, Managing Director and General Manager, and on behalf of Nebras Power by Khalid M Jolo, Chief Executive Officer. The signing ceremony was attended by a number of representatives from both companies.
Sur IPP, with an installed capacity of 2000 MW, is considered the largest power plant in the Sultanate and represents about 28 per cent of the total installed capacity for electrical connection system in the Sultanate. Project agreements were signed between Oman Power and Water Procurement Company (OPWP) and Phoenix Power Company in 2011, while commercial operations began in December 2014. Output from the plant is sold to OPWP under a long-term power purchase agreement that expires in 2029. Other project partners are Marubeni Corporation, Chubu Electric, and Multitech company.
Commenting on the deal, Khalid Jolo, Chief Executive Officer of Nebras Power said, “We are proud of this achievement, which contributes to the expansion of Nebras Power activities and strengthening its financial income as well as supporting its strategic plan in development and becoming a global leader in the power sector. We would like to thank QEWC for their cooperation to conduct this transaction. We would also like to emphasise that the Sultanate of Oman is one of the countries that Nebras Power is looking to expand its investments in as it has a proven track record for the development of power plants projects based on well-structured IPP programmes.” Nebras Power Company was established in 2014 as a Qatari joint stock company by Qatar Electricity and Water Company (60 per cent), Qatar Petroleum International Limited (20 per cent) and Qatar Holding (20 per cent).