Oman Oil to invest $1b

Projects like Duqm refinery, Salalah LPG, oil storage at Ras Al Markaz, Duqm gas pipeline and pipeline to Sohar and Wadi Jizzi will make progress in the coming months, according to Isam Al Zadjali, CEO of OOC.

MUSCAT

Oman Oil Company (OOC) would make capital investments in excess of $1 billion this year across all verticals, as it pursues energy related projects within and outside the country, said the CEO of the state-owned company on Tuesday.

Projects like Duqm refinery, Salalah LPG, oil storage at Ras Al Markaz, Duqm gas pipeline and pipeline to Sohar and Wadi Jizzi will make progress in the coming months, according to Isam Al Zadjali, CEO of OOC.

In the case of Duqm refinery project, the company was finalising the shareholder agreement with Kuwait Petroleum International, he said. “We will have financial closure sometime in the middle of this year and are hoping that before year end or early next year we can start construction of the facilities,” he said.

The Salalah LPG Extraction Project will make the country a significant exporter of LPG when it becomes operational in 2019 and Al Zadjali said it “has been approved by the board. We are negotiating with the banks right now for financial closure in the next few weeks”. He said they would also recommend the ammonia project, which is an expansion of Salalah Methanol project, to the company board. “We are also constructing the Duqm gas pipeline and also northern pipeline to Sohar and Wadi Jizzi and are looking at Ras Markaz where our plan is to construct another export terminal with storage facilities”.

Al Zadjali said they were in direct contact with Special Economic Zone Authority at Duqm and as things stood everything was as per plan, but the “financial situation has made a dent.”

The Musandam Gas Plant, he said was receiving gas from Block 8 in the range of 50 to 70 million scf/day and they were building a power plant next to it which would be operational this year. The plant has a capacity of 90 million scf/day.

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