Muscat: Oman Oil Refineries and Petroleum Industries Company (Orpic) signed a $2.8 billion loan agreement with a consortium of 21 international and national financial institutions yesterday for its projects including the Sohar Refinery Improvement Project (SRIP), which will be 65 per cent debt financed.
The loan agreements were signed on behalf of Orpic by Dr Mohammed bin Hamad Al Rumhy, minister of oil and gas and chairman of Orpic, and Musab Abdullah Al Mahruqi, chief executive officer of Orpic. The agreements were also signed on behalf of Orpic shareholder by Nasser bin Khamis Al Jashmi, undersecretary of the Ministry of Finance and Mulham bin Basheer Al Jarf, deputy chief executive officer of Oman Oil Company.
"This is a significant moment for both Orpic and the nation on two counts. It demonstrates the considerable appetite there is for international investment in Oman's oil and gas sector, and at the same time a step further in maximising the added value of the Omani crude," Rumhy said.
The consortium comprises a number of local banks namely Bank Muscat, National Bank of Oman, Al Ahli Bank, Bank Dhofar, Bank Sohar and Oman Arab Bank.
The consortium also includes international financial institutes namely, the Korean ECAs (KExim and KSure), Italian ECA (Sace), HSBC, Sumitomo Mitsui Banking Corporation, KFW IPEX Bank, Abu Dhabi Commercial Bank, Qatar National Bank, The Saudi National Commercial Bank, National Bank of Abu Dhabi, Standard Chartered Bank, Arab Banking Corporation, Arab Petroleum Investment Corporation, Ahli United Bank and Arab Bank.
"It is a reflection of the robustness of our business, the viability of our vision, and the commitment we have demonstrated that such a grouping of significant banks and financial institutions has come together to provide the financing required for a multibillion dollar project. We have proved that we are a business worthy of significant investment as we continue to transform Orpic in the coming five years," Orpic's CEO said.
Two major projects
At present, Orpic is developing two additional major projects, which are at design stage, namely the Liwa Plastics Project (LPP) and the Muscat-Sohar Product Pipeline (MSPP).
LPP is a steam cracker project to improve added value by processing light ends produced in Orpic's Sohar refinery and aromatics plant as well as optimise NGLs extracted from the natural gas. The project is on schedule for completion in 2018.
The MSPP involves a 280km pipeline between Muscat and Sohar for transporting refined products and will include a large storage and distribution terminal in Jifnain, north of Muscat. It will also connect directly to Muscat International Airport for delivery of jet fuel.
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