New opens in Oman

MUSCAT — A billion-dollar new oil refinery, one of Oman's biggest industrial projects and which has been assigned a key role in the country's economic diversification drive, was officially inaugurated on Wednesday in the Batinah region district of Sohar.

By Ravindra Nath

Published: Fri 20 Apr 2007, 9:38 AM

Last updated: Sat 4 Apr 2015, 9:14 PM

The Sohar Refinery Company (SRC), Oman's only second such facility, and the adjacent Oman Polypropylene Company (OPP), together involving a total capital outlay of $1.6 billion, were opened by Sayyid Dr Fahad bin al Julanda bin Majid Al Said at a high-status ceremony attended by top dignitaries from the government and private sectors.

SRC, which has already reached full production capacity of 116,400 barrels a day (b/d), exports 80 per cent of its output, the rest catering for the local market. The range of products includes LPG, propylene, naphtha, regular/super gasoline, kerosene, low-sulphur gas oil, fuel oil and granulated sulphur.

Acting CEO Ahmed bin Mohammed Al Hadabi underlined the significance of the project, noting that it would give a "significant boost to the national economy." He described the $1.3 billion plant as a proof of the country's "earnest efforts to diversify national income sources and incorporate the petrochemical industry into the gross domestic product in order to create job opportunities for citizens."

Work on the $312 million OPP, with a capacity of 340,000 tonnes annually, began in June 2004. Its entire requirement of propylene, the raw material, is provided by SRC.

The company is 40 per cent owned by Oman Oil Company and 20 per cent each by LG International, Gulf Investment Establishment and International Oil Investments Company.

Dr Hamed bin Hashim al Dhahab, Deputy CEO, said the company, which exported the first consignment of its 'Luban' branded products in November last year, currently employed 158 staff, nearly 60 per cent per cent of whom are nationals.

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