Apicorp wins OPP advisory

26 September 2003
Damman-based Arab Petroleum Investments Corporation (Apicorp) has been awarded the financial advisory mandate by Oman Polypropylene (OPP) for its proposed polypropylene plant at Sohar. Apicorp had emerged as frontrunner after the field narrowed to three in late July (MEED 29:8:03). The other bidders were BNP Paribas and Gulf International Bank.

Apicorp plans to issue a preliminary information memorandum (PIM) by early 2004 and to have the facility in place by mid-2004. The total debt requirement for the plant is expected to be about $170 million (MEED 13:6:03). OPP is sourcing its feedstock from Sohar Refinery Company, which is itself close to launching its 14-year, $467 million commercial debt package to syndication (MEED 29:8:03). This has been delayed and is now expected in the first week of October. A 10-strong group of predominantly international banks was mandated in June (MEED 13:6:03).

OPP is a joint venture between Oman Oil Company, which has a 60 per cent stake, and South Korea's LG International and The Hague office of ABB Lummus Global, with 20 per cent each. The plant, scheduled for completion in 2006, is expected to cost $200 million-250 million (MEED 6:12:02).

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