The Oman Oil Company Exploration and Production (OOCEP) finalized an agreement for a $1 billion loan, Times of Oman reports.

The funds will be used to pay down a previous loan and to invest in additional activities and operations, according to the Omani newspaper.

The loan will mature in five years and includes an option for an additional $500 million in financing, Oman Tribune reports. The company will pay an interest rate of 170 basis points more than the London Interbank Offered Rate (Libor).

“We are very proud of the overwhelming interest shown by the financial community, and give thanks to all those involved in the arranging and closing of the new facility,” OOCEP’s Director of Finance, Ayad El Balushi, said, according to Times of Oman.

OOCEP is a subsidiary of the state-owned Oman Oil Company.