Oman's ORPIC in talks on $2.5bn financing

Oman Oil Refineries and Petrochemical Companies will use funds to expand Sohar refinery

State-owned Oman Oil Refineries and Petrochemical Companies (ORPIC) is in talks with two local banks to raise $2.5bn to expand its Sohar refinery and refinance a previous loan, a government official said on Monday.

"We are talking to National Bank of Oman and HSBC Oman to raise a $2.5bn loan to extend the Sohar refinery and refinance," a government official involved in the project said.

The banks declined to comment.

The official said $1.5bn of any loan agreed would be used to upgrade a crude oil processing unit at Sohar refinery to produce 180,000 barrels per day (bpd) from the current 116,000 bpd. The remaining $1bn would refinance an old loan taken out in 2007 for a previous expansion of the refinery.

Oman has another refinery in the capital Muscat that produces 106,000 bpd and plans to build another refinery at the central eastern town of Duqm.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Accounting meets religion in challenge for Islamic banks

Accounting meets religion in challenge for Islamic banks

Reconciling accounting standards and religious principles is...

Banking on reforms in Kuwait

Banking on reforms in Kuwait

As Kuwait stares down its first deficit in 20 years, the Gulf...

Saudis face dilemma between size and pricing in debut bond sale

Saudis face dilemma between size and pricing in debut bond sale

Riyadh is under pressure to maximise the size of its international...

Most Discussed
sponsoredTracking