Banks vie for Oman refinery project

09 February 2014

Bids submitted to finance expansion of Sohar refinery in Oman

Banks have submitted their bids to finance the $1.9bn expansion of Oman Oil Refineries and Petroleum Industries’ (Orpic) Sohar refinery.

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

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

A joint venture of the UK’s Petrofac and South 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.

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

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