Banks are due to submit their bids to finance the $1.9bn expansion of Oman Oil Refineries and Petroleum Industries’ (Orpic) Sohar refinery on 31 January.

Financial close of the deal is expected to close within the next few months, say banking sources.  

The financing package includes around $1bn of debt to be used to refinance existing obligations.

A joint venture between the UK’s Petrofac and the Korean firm Daelim Industrial Company was awarded a 36-month engineering, procurement and construction contract for the refinery expansion in November last year.

The refinery was originally built in 2006, but Orpic is now looking to increase the facility’s production capacity from 187,000 barrels a day (b/d) from 116,000b/d.

The expansion will also increase production of liquefied petroleum gas, naphtha, jet fuel, gasoline, diesel and propylene to meet growing local demand.

In June 2012, Orpic appointed the UK’s HSBC and National Bank of Oman as financial advisers for the financing.