Oman’s Musandam Peninsula is a noncontiguous part of the country that is isolated both geographically and economically. Located on the Strait of Hormuz at the mouth of the Persian Gulf, its stability is of critical importance to U.S. national security, but its economy is significantly less developed than the rest of the country. The region has struggled to attract investment and growth of key industries such as tourism have been hampered by limited fuel supply.
Solution and Impact
DFC is providing financing and political risk insurance to PetroTel of Plano, Texas, to support the development of oil and gas reserves in Musandam, along with the construction a three-kilometer onshore pipeline to a local gas processing plant. The oil produced will be sold to international markets, and the gas produced will be used for local needs, including supplying local power plant, and helping replace small diesel generators. The additional power generated will also support local industries, including the tourism industry, which is a key source of local jobs.
The project is projected to create 164 permanent jobs, and additional temporary construction jobs.