Banks eye Sohar industrial opportunities

31 January 2003
The appointment of a financial adviser is close on the Sohar polypropylene project, after the client, Oman Polypropylene (OPP), shortlisted international institutions for the mandate (MEED 6:12:02).

The shortlisted banks are ANZ Investment Bank, Gulf International Bank, BNP Paribasand Arab Banking Corporation. The debt financing package is expected to total about $140 million and will be brought to the market by mid-year. Total project costs are put at $200 million.

OPP is a joint venture between Oman Oil Company, which has a 60 per cent stake, and South Korea's LG Internationaland The Hague office of ABB LummusGlobal, with 20 per cent each (Petrochemicals, MEED Special Report, 1:11:02, page 26).

The 340,000-tonne-a-year (t/y) plant will be built next to the planned $1,100 million Sohar refinery. Preliminary discussions have started with selected banks interested in participating in the refinery's estimated $1,000 million debt package.

The preliminary information memorandum (PIM) is now due to be issued to banks by mid-February. Bank of Americais acting as financial adviser.

The engineering, procurement and construction (EPC) contractor is a Japanese joint venture of Chiyoda Corporationand JGC Corporation. The refinery will be owned and operated by the Sohar Refinery Company, part of Oman Oil Company(MEED 10:1:03).

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