Banks prepare for OPP advisory

06 December 2002

International banks are preparing to bid by the mid-December deadline for the financial advisory mandate for Oman Polypropylene (OPP). Banks expected to be among the bidders are ANZ Investment Bank, BNP Paribas, Citibankand Societe Generale.

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 Lummus Global, with 20 per cent each (Petrochemicals, MEED Special Report, 1:11:02, page 26).

Bankers expect the mandate to be awarded by mid-to-late January and for the financing to be brought to market towards the end of the second quarter of next year. The total cost of the project is expected to be between $200 million-250 million.

The plant, which will be built in Sohar, will have capacity of 340,000 tonnes a year of various grades of polypropylene (PP).

Due to be completed in 2006, the plant will primarily meet PP demand in Asia.

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