Oman Oil Company, Agreement signed for ethylene dichloride plant
Posted: 17 November 2004
Oman Oil Company (OOC) signed a Shareholders Agreement with LG International (LGI) of Korea and National Petrochemical Company (NPC) of the Republic of Iran for the construction of an Ethylene Dichloride (EDC) plant in the Sohar Port Industrial Area.
The agreement was signed on behalf of OOC by H.E. Maqbool Ali Sultan, Minister of Commerce and Industry and Chairman of OOC, H.E. M. Nematzadeh, Deputy Petroleum Minister and President of NPC and David Kang, Executive Vice President on behalf of LGI.
H.E. Maqbool revealed that the US$ 300 million venture will be equally owned by OOC, LGI and NPC, each having a share of 33.3%.
H.E. Maqbool further said that the capacity of the plant to produce 300,000 tons of ethylene dichloride per annum will go to the manufacturing of various plastic products. The implementation of the project will provide 170 direct employment opportunities in different fields and highly technical jobs.
He also stated that such project is a clear indication of additional investment projects being implemented by His Majesty’s Government which encourage foreign investors to enter into joint ventures aimed at diversifying and developing the Omani economy.
His Excellency Mohammed Reza Nematzadeh, Deputy Iranian Petroleum Minister and President of NPC, said the agreement was a step in the direction of NPC’s declared policy of regional cooperation in the petrochemical sector adding that the decision to invest in Sohar project was part of NPC’s broader plans to expand its operation by investing in other countries.
David Kang, Executive Vice President of LGI said that they feel honoured and have a sense of responsibility to be one of those who make the very important step forward in the petrochemical industry in Oman. On the other hand, they are also excited by having the opportunity to write another successful story in this beautiful country, following Oman Polypropylene project.
Financial close of the project is expected to conclude in the last quarter of 2005 and the construction of the project would start in the first quarter of 2006. Commercial production is expected in second quarter of 2008.
LGI will be the EPC contractor for the project while the feedstock shall be supplied by NPC for a long-term agreement.
Posted by Alexander Lindsay, Editor Pipeline Magazine
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