Oman Oil Company (OOC) has inked a US$ 850 million joint venture (JV) deal with Korea-based LG International (LGI) for setting up a Purified Terephthalic Acid (PTA) and Poly Ethylene Terephthalate (PET) project in Port of Sohar, Oman, by 2016.
As pet the agreement, it is proposed to form a new JV firm to establish a petrochemical plant at Port of Sohar in two phases, in lines with international norms. OOC would have 70 percent ownership in the new firm, while LG International would hold the rest 30 percent stake, Oman Daily Observer said.
Upon commissioning, the new facility is intended to support annual production of 1.1 million tonnes of PTA and 500,000 tonnes of PET.
Nasser bin Khamis al Jashmi, Under-Secretary of the Ministry of Oil and Gas and Chairman of OOC and Kent Lee, Senior Vice-President LG International inked the deal on behalf of their respective organizations.
In a media statement, Mr. Jashmi said that establishment of the new facility is a key investment project aimed at further fortifying PET based downstream projects. Besides, it would also further advanced training and enhanced job opportunities to Omani citizens.
The project, Mr. Jashmi said, upholds the economic significance of implementing diversified industrial projects in Port of Sohar and also backs the Government’s efforts towards diversifying the country’s economy and bringing foreign direct investment in the country.
He said the project would boost the national economy by engaging local suppliers and contractors and using facilities of Sohar Port for importing plant machinery and other raw inputs. The plant would use inputs produced in Oman Refineries and Petroleum Industries Company’s (Orpic) Sohar based aromatics facility, he added.
Established in 1996, OOC majorly contributes in the Sultanate’s efforts of diversifying the national economy and in attracting domestic and foreign investment.
Mr. Lee too highlighted the importance of the project for both the nations and said that they are firm on putting it to operation by 2016, while working in association with OOC.