MUSCAT: Oman Oil Co. is talking to bankers about raising a $ 4 billion loan to build an oil refinery in the southern coastal town of Duqm, a major part of the government’s effort to build the country’s industrial base.
Oman unveiled a plan to build a large petrochemical complex alongside a $ 6 billion refinery in Duqm last year, as it seeks to expand downstream oil operations.
“Oman Oil Co. is sounding out local banks to raise $ 4 billion for the Duqm refinery,” a senior Omani commercial banker said on the sidelines of an investment seminar.
“I also believe it will soon appoint a lead arranger for this loan,” he added.
Oman Oil Co. is developing the 230,000 barrel-per-day refinery project with International Petroleum Investment Co, based in the UAE.
It said recently it would build a 200 million barrel crude oil storage facility at Duqm, by far the world’s largest tank farm, at a cost of $ 1 billion. Gulf Arab oil producers may see the facility, lying outside the Strait of Hormuz, as insurance against potential shipping disruptions in the strait.
$4 bn loan talks for refinery
