• 2 days Retail On Pace For Most Bankruptcies And Store Closures Ever In One Year: BDO
  • 10 minutes America Could Go Fully Electric Right Now
  • 4 days Majors Oil COs diversify into Renewables ? What synergies forget have with Solar Panels and Wind Tirbines ? None !
  • 3 hours Clean Energy Is Canceling Gas Plants
  • 17 hours GAME CHANGER: MIT Startup Commonwealth Fusion says Commercial Product by early 2030s ! THIS CHANGES EVERYTHING..
  • 5 hours Rethinking election outcomes for oil.
  • 7 hours The Leslie Stahl/60 Minutes Interview with President Trump
  • 2 days America's Frontline Doctors - Safely Start Living Again!
  • 16 hours OP article : "Trump blasts Biden Fracking Plan . . . "
  • 3 hours Australia’s Commodities Heartland Set for Major Hydrogen Plant
  • 7 hours Video Evidence that the CCP controls Joe Biden
  • 19 hours Biden denies fracking ban
  • 2 days Is the coal industry on the way out?
  • 2 days "COVID Kills Another Oil Rally" by Tom Kool 10/16/2020
  • 3 days Conoco Pledges ‘Net-Zero’ Emissions in Break With U.S. Rivals
The $4.2 Trillion Trend Taking Over Wall Street

The $4.2 Trillion Trend Taking Over Wall Street

The ESG megatrend has taken…

Oil Prices Aren’t Going Anywhere Until The Election

Oil Prices Aren’t Going Anywhere Until The Election

Oil prices are almost certainly…

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

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.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • Reed McKinley on May 21 2020 said:
    The company was forced to abandon its glasshouse technology in 2018, and then started pursuing an experimental stretch-film approach.

    It was insolvent for 1.5 years and surviving on emergency loans from its parents. So you can't blame the crisis, just a technology which didn't work out well before the crisis.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News