Oman's OIC acquires 30pc stake in GIPI

MUSCAT — Oman Investment Corporation (OIC), one of the leading private equity firms in the region, has picked up a 30 per cent stake in Gulf International Pipe Industries (GIPI), for $30 million.

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Published: Sun 13 Apr 2008, 9:41 AM

Last updated: Sun 5 Apr 2015, 11:39 AM

"Essentially, it is a strategic investment, and OIC's key objective has always been to augment the shareholder-value," OIC CEO Kalat Al Bulooshi, said here yesterday .

"More importantly, investment in GIPI is part of OIC's plans to invest in projects that add value to the country's economic and industrial growth. We will continue to invest in value added projects in the Sultanate and the region," he added.

GIPI is a prestigious project coming up in Oman's Sohar Industrial Estate, to produce 250,000 tonnes of line and casing pipes per annum. The groundbreaking ceremony of the plant in Sohar will be held on Tuesday under the auspices of His Excellency Sayyid Hilal bin Bader bin Ali Al Busaidi, Wali of Sohar.

The more than $100 million GIPI project, Bulooshi said, was expected to create over 100 new job opportunities, and enhance other business opportunities.

GIPI is expected to start commercial production by the second half of 2009. The activities and services of GIPI will include manufacturing of line pipes, casing pipes and tubing pipes and services such as coating (internal and external coating of pipes to protect them from corrosion) and threading of casing and tubing pipes. Line pipes are used for pipelines, plants and flow-lines, which are laid 1-2m below the ground or on surface. Casing pipes are mainly used for oil and gas wells to ensure casing protection."We are committed to all our stakeholders. Our endeavour is to emerge as the premier private equity firm in the region, in terms of investment returns and performance," Bulooshi said.

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