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.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.