Dec 27, 2018 — SULTANATE OF OMAN. Licence Exemption Order No. (2/2018). GRANTED TO. Daleel Petroleum LLC. Commencement Date: 27 December
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Licence Exemption Order No . (2/2018) 2 CONTENTS ARTICLE (1) Citation and Commencement .. .. . 3 ARTICLE (2) Interpretation .. .. .. 3 Terms defined in Law .. .. 5 Paragraph references .. .. .. 5 ARTICLE (3) Exemption .. .. .. . 6 General .. .. .. . 6 Duration .. .. .. 7 ARTICLE (4) Exclusion from PWP Purchase Duty .. .. 7 ARTICLE (5) Termination and review .. .. . 7 Schedule A: Technical & Other Details .. .. 9
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Licence Exemption Order No . (2/2018) 3 Licence Exemption Order No . ( 2/2018 ) The Authority for Electricity Regulation, Oman, is the Authority established pursuant to Article (19) of Royal Decree ( 78/2004 ) In exercise of the powers conferred on it by the Sector Law the Authority hereby makes the following Order: ARTICLE (1) Citation and Commencement 1.1 This Order shall be referred to as Licence Exemption Order No . ( 2 / 2018 ) and shall come into effect on 27 December 2018 . ARTICLE (2) Interpretation 2.1 In this order: 2.2 Definitions ” Affiliate ” in relation to the Exemption Holder means any Person which Controls (directly or indirectly) the Exemption Holder and any other Person Controlled (directly or indirectly) by such first mentioned Person, including where the Exemption Holder is a company, the ultimate holding company of the Exemption Holder and any holding c ompany of the Exemption Holder and any subsidiary of such holding company; ” Commencement Date ” means the grant date of this Licence E xemption Order ; “Controls” means, in respect of a Person by another, that that other (whether alone or with others and whether directly or indirectly and whether by the ownership of share capital, the possession of voting power, contract or otherwise): (i) has the power to appoint and/or remove all or the majority of the members of the board of directors or other governing body of that Person or of any other Person which controls that Person; or
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Licence Exemption Order No . (2/2018) 4 (ii) controls or has the power to control the affairs and policies of that Person or of any other Person which controls tha t Person; or (iii) is the parent undertaking of that Person or is the parent undertaking of any other Person which controls that Person; or (iv) possesses or is, or will be at a future date, entitled to acquire: (a) twenty per cent (20%) or more of t he share capital or issued share capital of, or of the voting power in, that Person or any other Person which controls that Person; or (b) such part of the issued share capital of that Person or any other Person which controls that Person as would, if the whol e of the income of such Person were in fact distributed, entitle him to receive twenty per cent (20%) or more of the amount so distributed; or (c) such rights as would, in the event of the winding – up of that Person or any other Person which controls that Pers on or in any other circumstances, entitle him to receive twenty per cent (20%) or more of the assets of such Person which would then be available for distribution, and, for those purposes, there shall be attributed to any Person the rights or powers of any nominee or associate of his and the rights and powers of any one or more Persons which he, or he and any nominee or associate of his, controls and “Control” and “Controlled” shall be construed accordingly;
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Licence Exemption Order No . (2/2018) 5 ” Exemption ” means an Exemption granted pursuant to the Sector Law for the purposes of exempting a Person from the requirement to hold a Licence in relation to a Regulated Activity or from the requirement to comply with a particular condition or conditions of a Licence and Exempt , Exempted and Exemption Holder shall be construed accordingly; ” Licensee ” means a person granted a Licence by the Authority pursuant to the Sector Law, to undertake one or more of the Regulated Activities listed in Article (3) of the Sector Law; ” Person ” includes an individual, partnership, company, firm, trust, body corporate, government, government body, authority, emanation, agency, instrumentality, unincorporated body or an association; means any land, building or structure occupied or used by a Person; “The Authority ” means the Authority for Electricity Regulation, Oman established pursuant to Article (19) of the Sector Law; means each of the activities listed in Article (3) of the Sector Law; Sector Law ” means Royal Decree ( 78/2004 ) governing the Regulation and Privatisation of the Electricity and Related Water Sector; Terms defined in Law 2.3 Words and expressions, other than those defined in this Article (2), which are defined in the Sector Law, shall have the meanings ascribed to them in the Sector Law. Paragraph references 2.4 References to paragraphs and Articles shall b e to paragraphs of Articles in this Order and to Articles in this Order and in the Sector Law where indicated.
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Licence Exemption Order No . (2/2018) 6 ARTICLE (3) Exemption General 3.1 Daleel Petroleum LLC may , to the extent and for the purposes specified in paragraph 3.2, subject to the conditions specified in paragraph 3.3 and for the durations specified in paragraph 3.5, conduct the Regulated Activities specified in paragraph 3.2 without being required to be authorised to do so by a Licence granted by the Authority pursuant to Article (25) of the Sector Law. Accordingly, for those periods, to that extent, for those purposes and subject to compliance with those conditions, Daleel Petroleum LLC shall not be in breach of Article (4) of the Sector Law. 3.2 Subject to the Conditions listed in paragraph 3.3 Daleel Petroleum LLC shall be Exempt as described in paragraph 3.3 in relation to the following Regulated Activities: (i) T he Generation of electricity ; and (ii) The Distribution of Electricity Conditions 3.3 The conditions referred to paragraph 3.1 in this Article are that: (a) T h e Exemption referred to in paragraph 3.2.1 (i) above in relation to the Generation of electricity , applies: (i) to the undertaking of that Regulated Activity by the Exemption Holder (and by no other Person); (ii) at and using the Production Facilities listed in Schedule A, and no other Production Facilities; (iii) up to but not exceeding, and only for so long as those Production Facilities have no more than, the capacities listed in Schedule A; and (iv) for the purpose listed in Schedule A. (b) The E xemption in paragraph 3.2. (ii ) above in relation to the Distribution of electricity applies: (i) To the undertaking of that Regulated Activity by the Exemption H older (and by n o other Person); (ii) At and using the Distribution Systems listed in Schedule A, and no other System; (iii) To these Systems without extension; and (iv) For the purpose listed in schedule A.
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Licence Exemption Order No . (2/2018) 8 feel that a change of circumstances has arisen such that it is in the public interest f or it to do so. Without prejudice to the generality of the foregoing, the Authority may, in particular, review and modify or termi nate this Exemption if any of the following circumstances arises: (a) Liberalisation is proposed pursuant to Article (32) of the Sector Law; (b) the Authority revokes any relevant Licence or Exemption; (c) one or more of the conditions referred to in this Exemption is not complied with by the Exemption Holder; (d) on a C hange of Control of the Exempt ion Holder which has not been approved in advance in writing by the Authority; (e) if it is found that the issue of this Exemption has been based on inaccurate or incorrect information provided by the Exemption Holder or any Affiliate of the Exemption Holder; (f) if the Exemption Holder seeks to Connect any System or Production Facility which is the subject of this Exemption Order, or if already Connected seeks a further connection, to the System of a Licensee ; (g) if, after its System has become Connected to the Syst em of a Licensee, the Exemption Hol der suffers termination of its Connection A greement with the R elevant Licensee or fails to comply with the requirements of the Grid Code and/or the Distribution Code, insofar as applicable to it. Executive Director & Member On behalf of the Authority for Electricity Regulation, Oman 27 December 2018
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Licence Exemption Order No . (2/2018) 9 Schedule A: Technical & Other Details Location The location, layout and characteristics of the Production Facilities and System that are the subject of this Licence Exemption Order No 2/2018 are shown in the attachment s of Schedule 2, including Tab F , of the Licence Exemption A pplication. Technology & installed capacities Type of Generator Marker and Model Capacity (Site de – rated) Gas Turbine generator – (A – 1701) Siemens make 5.8 MW Gas Turbine generator – (A – 1702) Siemens make 5.8 MW Gas Turbine generator – (A – 1703) Siemens make 5.8 MW Gas Turbine generator (A – 1721) Siemens make 5.8 MW Gas Turbine generator (A – 1722) Siemens make 5.8 MW Total Capacity of Generation units (MW) 29 MW Primary fuel The Gas Turbine Generators are fuelled by natural gas as a primary fuel supplied from the Daleel Gas Plant. Fuel Oil ( Diesel) is used as a backup fuel oil. Purposes The Production Facilities that are the subject of this Licence Exemption Order No . ( 2 / 2018 ) will: a. Generate of electricity of a capacity up to Maximum 29 MW for the purposes of Self Supply for the duration stipulated in this Licence Exemption Order at the location detailed in in Schedule 2 and Tab F of the Lice nce Exemption A pplication ; b. Facilities through electricity Distribution Network shown in the drawings in Tab F of the Lic ence Exemption Application for the duration stipulated in Condition 3.5(a). Authority for Electricity Regulation, Oman 27 December 201 8
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