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Mon 27 Jun 2005 04:00 AM

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Oman Refinery Company signs a $140 million loan to expand capacity

State-owned, Oman Refinery Company is expanding its refining capacity from the present 85000 barrels per day (bpd) to 106000 bpd and establishing the additional unit of Al-Azmarah, which will increase the refinery's stock of the super benzene.

State-owned, Oman Refinery Company is expanding its refining capacity from the present 85000 barrels per day (bpd) to 106000 bpd and establishing the additional unit of Al-Azmarah, which will increase the refinery's stock of the super benzene.

To part finance the US $320 million expansion project, ORC signed a syndicated term loan facility agreement involving US $140 million with a consortium of regional and local banks, led by Bahrain's Gulf International Bank (GIB).

"We hope to complete the expansion by the end of 2006 or early 2007. The term loan facility will be utilised to part finance the expansion project," said Dr. Adil A. Al Kindy, CEO.

Al Kindy said work on the expansion began seven months ago. 60% of the project cost had been met by utilising the company’s resources.

ORC's current expansion project also includes the Mina Al Fahal -Sohar crude pipeline to provide feedstock for Sohar Refinery Company (SRC). The new crude oil pipeline will connect ORC area at Mina Al Fahal and the SRC in the port area. The estimated pipeline length is 266 kilometres, one of the longest of its kind in Oman.

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