Recently, Oman Oil Company (OOC) has engaged into an international trade deal with Pakistan by buying 49% of stake in the latter's Orient Power Company, which is a 450 MW power plant to be built in 2 phases at Balloki. The stockholders' deal was signed by both Nadeem Babar, the chief executive officer of Orient Power, and Mulham Al Jarf, the deputy chief executive officer of OOC. Mr. Jarf commented that the new project was significant since it represented the initial investments of OOC to Pakistan. He further said that the company was pleased to work with Orient Power, which boats of its expertise in terms of power plant operations. Meanwhile, Mr. Babar stated that his company was also delighted to team up with OOC. He also said that he hoped the international trade deal would pave the way for more foreign investments in the future.

According to sources, Phase I of the project costs around $181 million. The power plant has been developed as a Combined Cycle Gas Fired project that will utilize the most advanced technology of gas turbines. The construction of the facility is expected to be finished within a period of two years. It is also expected to start with its operations by 2008. Under the international trade deal, natural gas would be provided by Sui Northern Gas Pipeline Limited and the power output would be marketed to National Transmission and Dispatch Company.

According to reports, the energy project would be linked directly to the Lahore Grid. After the completion of the 2 phases, the power plant would supply around 20% of electricity to Lahore. OOC is a 100% state-owned commercial firm in Oman. The company was established in 1992 in order to provide the government another alternative of seeking business and international trade opportunities within and outside the country.

The Oman Oil Company plays an important role in the nation's efforts to diversify its economy. Moreover, it was also established in order to help the country in attracting more local and foreign investments and international trade deals. In Oman, the OOC holds several interests in various sectors and projects such as aluminum melting, petrochemicals, refining, petroleum retailing, gas transmission, among others. Meanwhile, outside the country, the OOC holds interests in industries like oil product logistics, petroleum pipelines, and the production and exploration of oil.

Meanwhile, Orient Power Company Limited is a new IPP firm that was established 3 years ago by Mr. Babar and the National Group of Industries. It must be noted that Mr. Babar currently serves as a senior executive in the firm with an extensive expertise in terms of structured finance, energy finance, and power generation. Before he established the Orient Power Company in 2003, he worked as the chief of the International Division of El Paso Corporation of Houston, Texas where he managed around 32 power facilities worldwide. The recent international trade deal is expected to open more investment opportunities and benefit both countries. Moreover, it is expected to boost the international trade relationship between Oman and Pakistan.