DAMMAM, 30 September 2003 — Arab Petroleum Investments Corporation (APICORP) has been mandated by Oman Polypropylene LLC (OPP) as the structuring bank to formulate a suitable financing strategy and structure for OPP’s proposed new polypropylene plant to be built in Sohar, Oman. The deal is expected to close in the second quarter of 2004.
OPP is owned by Oman Oil Company (60 percent), ABB Lummus Project Participation BV (20 percent), and LG International Corp. (20 percent).
The project will have an initial nameplate capacity of 340,000 tons per annum of various grades of polypropylene. Propylene feedstock will be supplied by the Sohar Refinery Company, which is currently constructing a new 116,000 barrels per stream day deep conversion refinery on an adjacent site in the Sohar Industrial Area, Oman. The refinery will also supply various utilities to the OPP plant. Construction of the OPP plant is scheduled to commence in 2004 and will be undertaken by a consortium of ABB and LGI. LGI will also act as marketer for the polypropylene produced by the plant.