Oman's Sembcorp Salalah Power and Water Co is considering refinancing its senior debt, it said on Tuesday, adding to a growing list of Gulf firms taking advantage of lower interest rates and excess liquidity in the banking system.

The energy company, which is 40 per cent owned by Singapore's Sembcorp Utilities, did not specify how much debt it was looking to refinance.

According to its 2014 annual report, the firm had around RO235.5 million ($611.7 million) of debt, which was raised to fund the construction of its power plant. Among the original lenders were Standard Chartered, Bank Muscat and Bank of China, the report said.

Several companies in the Gulf, such as Saudi Arabia's Jabal Omar Development Company and Dubai-based National Petroleum Services, have come to the loan market in recent months to refinance existing loans at more favourable borrowing rates as cash-rich local banks compete for deals.

SSPW owns and operates the Salalah independent power and water plant in the south of the sultanate, which has contracted capacity to produce 445 megawatts of power and 15 million gallons of water per day, according to its website. – Reuters