Eighteen leading international and regional banks are working on financing proposals for the estimated $580 million Sohar and Salalah gas pipeline projects in Oman. The banks are working with the seven groups of international contractors that submitted technical bids for the project in October. The client is Oman Gas Company, which is being advised by HSBC. The commercial bids, including the financing proposals, are to be submitted by 12 December (MEED 29:10:99, Oman).

The contractors and banking groups are:

Dodsal of India - ABN AMRO and Arab Petroleum Investments Corporation (Apicorp)

Hyundai Engineering & Construction Company, with LG Engineering, both of South Korea - Arab Banking Corporation, Commerzbank and Industrial Bank of Japan

Saipem and Snamprogetti, both of Italy, with Athens-based Consolidated Contractors International Company (CCC) - Greenwich NatWest, Gulf International Bank and MediocreditoCentrale

Techint of Argentina - Bank of Tokyo-Mitsubishi, Credit Lyonnais and WestLB

Technip Germany, with Athens-based Joannou & Paraskevaides (J&P - Overseas) - ANZ Investment Bank, Barclays Bank and Deutsche Bank

Wilbros of the US, with Itochu Corporation of Japan - Bank of America and Sumitomo Bank

SK Engineering & Construction and Daewoo Corporation, both of South Korea - Banque Nationale de Paris and Fuji Bank

The financing package will be a combination of export credits and commercial loans. The maturity of the facilities is expected to range between 8-12 years. 'The client's advisers are trying to convince banks to look on it as a sovereign borrowing,' says one banker working on the deal. 'But most of the banks areinclined to treat it as a pure project finance transaction.'