Shareholding and partnership agreements were signed on 10 October between Oman Oil Company (OOC), the government and the US' Dow Chemical Companyfor implementation of the planned olefins complex at Sohar, and more details have been released on the scope and cost of the scheme. Dow will take a 50 per cent stake in the project company, while OOC and Muscat will each hold 25 per cent. Project costs are estimated at RO 1,000 million ($2,560 million) and the plant will have capacity of 800,000 tonnes a year.
The complex will comprise an ethane cracker and three downstream units producing low-density polyethylene (LDPE), high-density polyethylene (HDPE) and linear low-density polyethylene (LLDPE). The joint venture will design, build and operate the plant. Construction is due to start next year and financing is scheduled for completion by the end of 2005. BNP Paribasis acting as financial adviser (MEED 23:7:04).
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