Statement on Glasspoint Liquidation
GlassPoint Solar is a venture capital startup based in Silicon Valley, USA, specialized in concentrated solar arrays to produce the steam necessary for enhanced oil recovery as an innovative and cost-effective alternative to natural gas. The company’s investor profile comprises of 12 companies, including Oman’s 31% share along with Royal Dutch Shell and other international funds and specialized oil companies. The liquidation decision of GlassPoint Solar comes after the steep fall in oil and gas prices caused by the global economic slowdown in the wake of the coronavirus pandemic and its negative impact on business across the globe, especially on hydrocarbon producers, travel and hospitality businesses. The company investors are facing the same very challenging business environment.
In view of these challenging economic circumstances and uncertainties about the short and long-term oil prices, investors have agreed to cease additional funding to the company operations.
The company has a regional representative office in Oman where arrangements are already underway to reassign the remaining Omani staff to companies within or outside the OIA portfolio.
One of the most valuable assets of GlassPoint is its patented technology that uses solar power to produce steam. Some investors have already shown interest to buy the intellectual property rights to this technology, and this matter will be arranged by the assigned liquidation agent in accordance with the applicable regulations.
It is also very important to note that this partnership has allowed valuable technology transfer to Oman. Such technology has been successfully implemented in the massive “Miraah” project in partnership with Petroleum Development Oman, allowing PDO a cost-effective alternative to natural gas to produce the steam needed for their oil recovery operations. The 600m USD project was delivered within the set timeframe and budget, and is already yielding the expected results, under the direct supervision of PDO, without any undesired impacts. As well as attracting foreign investment to Oman, the project has helped in technology transfer to Oman and provided exposure to innovative technologies to talented Omanis.