Oman is becoming a focus of the Middle Eastern loan market as more Omani companies line up to tap the international loan market, but the sudden upturn in borrowing from the Sultanate is stretching banks’ exposure limits, bankers said on Friday. Oman's government and state-linked firms are turning to the syndicated loan market as low oil prices weaken government finances and make it harder for the state to fund projects from internal resources. "Activity at the moment in the Middle East is essentially centred around Oman, with a little bit in the UAE," a banker said. Oman Oil Company Exploration & Production (OOCEP) appointed Sumitomo Mitsui Banking Corp as financial advisor this week on a loan that is likely to exceed USD1bn, banking sources said. Parent Oman Oil Co (OOC) is also in talks with banks to amend the terms of a USD1.85bn revolving credit facility dated September 2014. The company is aiming to extend the maturity of the loan, one tranche of which is due to mature in 2017.   Despite a shortage of Middle Eastern loans, mounting Omani exposure is leading bankers to question if there is sufficient bank appetite for the deals. Two large recent Omani loans, a USD1bn sovereign loan which closed at the end of the year and a USD4bn for Petroleum Development Oman (PDO), another upstream oil business - have already used up banks' Omani credit limits. Last month the Omani government also raised a USD2.5bn bond, its first in almost 20 years, as part of a plan to borrow up to USD10bn abroad. (Reuters)