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Mon 19 Nov 2018 02:59 PM

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Oman announces merger to create new oil giant

CEO named to run merger between government-owned Oman Oil Co and Oman Oil Refineries & Petroleum Industries Co

Oman announces merger to create new oil giant
The merger marks a further step in combining the companies' management and operations.

The largest Gulf producer that’s not an OPEC member is combining state-run oil investment and refining companies to form a business that spans pumping crude and natural gas to processing and trading fuels.

Government-owned Oman Oil Co and Oman Oil Refineries & Petroleum Industries Co named Musab Abdullah Al Mahruqi as chief executive officer of the merged group starting from December 2.

It marks a further step in combining their management and operations, according to a joint statement posted on the Twitter account of the refining business.

The merged company will have combined stakes in about 1.1 million barrels per day of refining capacity in Oman, India and Hungary.

Oman abuts the Strait of Hormuz, a key transit point for regional crude exports.

Oman Oil Minister Mohammed Al-Rumhy said this month that  producers think the market is oversupplied and that they may need to cut output.

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