Oman Oil Company (OOC) on 28 June announced the sale of a 20 per cent stake in the Oman Polypropylene (OPP)venture to Kuwait's Gulf Investment Corporation (GIC). The move follows the withdrawal of US-based ABB Lummus Global as an equity partner and engineering, procurement and construction (EPC) contractor (MEED 9:4:04).
The GIC acquisition will reduce OOC's share in the project to 60 per cent. The remaining 20 per cent will continue to be owned by South Korea's LG International, which is carrying out the EPC contract with LG Engineering & Construction.Construction has begun on the polypropylene plant, which will have capacity of 340,000 tonnes a year and be located at the new Sohar port and industrial area. Commercial production is due to start in late 2006. About 90 per cent of the plant's output will be exported. Total project costs are estimated at $313 million and syndication is under way on a $240 million commercial debt package, lead arranged by HSBC, Arab Banking Corporation, BNP Paribasand Arab Petroleum Investments Corporation (Apicorp), which is OPP's financial adviser (MEED 14:5:04).