MINISTRY OF ENDOWMENT
& RELIGIOUS AFFAIRS
Sultan Qaboos Grand Mosque - Muscat

Diversification

DiversificationOver the past couple of years, the focus of the government in Oman has been to develop the non-oil sector and hence a policy shift towards economic diversification, privatization of state-owned assets and structural reforms. We are seeing massive investments in areas such as power, aluminum, fertilizers, petrochemicals, water desalination, infrastructure related works and tourism sectors. In addition to multi-billion dollar investments in constructing projects such as Sohar Refinery, Oman Polypropylene, Sohar Aluminum.

Sohar Refinery Company is owned by Oman Oil Company (20%) and by the Government of Oman (80%). SRC is being set up in Sohar as a grass-root refinery, which will receive mixed feedstock of Oman crude oil and atmospheric residue from Oman Refinery Company. The refinery will have a crude unit with a capacity of 116 400 b/p/d and an RFCC unit with a capacity of 75,260 b/p/d. Propylene production will be approximately 340,000 t/p/y. The refinery should start its commercial operation in September 2006.

Oman Oil Company (60%), with LG International Corporation (20%) and Gulf Investment Corporation (20%) has formed Oman Polypropylene. OPP will construct, own and operate a Polypropylene Plant at Sohar Industrial Area adjacent to the planned Sohar Refinery Company, where feedstock and utilities are supplied. The plant will have a capacity of 340,000 t/p/y of polypropylene. It will be capable of producing a range of homo-polymers and random co-polymers. Completion of the project is schedule for 2006.

The Sohar Aluminum Smelter project will produce high grade aluminium products. The joint venture has been created in 2005, with Oman Oil Company, the Abu Dhabi Water and Electricity Authority and the Alcan Inc. Once commissioned, the company will offer an installed capacity of 330,000 tonnes per annum (TPA) and is expected to contribute almost 2 per cent of the country’s GDP. The project achieved Financial Close on the 11th of December 2005. Construction activity has already started on site.

Oman Petrochemical Industries Company is a joint venture owned by Oman Oil Company (25%), the Government of Oman (25%) and The Dow Chemical Company (50%). OPIC will design, build and operate a petrochemical complex in the Sohar Industrial Port Area, which will comprise a gas cracker and three world-scale polyethylene production units.

Salalah Methanol Company has been formed in February, 2006 by Oman Oil Company (90%) and Oman Energy Trading Company (10%). SMC is to undertake a project to build a state-of-the art methanol production facility in Salalah Free Zone. The project includes 3000 metric tons per day methanol plant. The commercial operations will commence during the first half of 2009.

Oman Gas Company was established in August 2000 by Oman Oil Company (20%) and the Government of Oman (80%). OGC owns and operates the country’s gas transportation facilities, which mainly supplies the Power Generation Plants and other small consumers. In 2002, OGC completed the construction of two major pipelines, from Fahud to major industry in Sohar and from Saih Rawal to Salalah Port & Free Zone. In 2005, OGC has delivered 6.0 billion sm3.DiversificationOver the past couple of years, the focus of the government in Oman has been to develop the non-oil sector and hence a policy shift towards economic diversification, privatization of state-owned assets and structural reforms. We are seeing massive investments in areas such as power, aluminum, fertilizers, petrochemicals, water desalination, infrastructure related works and tourism sectors. In addition to multi-billion dollar investments in constructing projects such as Sohar Refinery, Oman Polypropylene, Sohar Aluminum.

Sohar Refinery Company is owned by Oman Oil Company (20%) and by the Government of Oman (80%). SRC is being set up in Sohar as a grass-root refinery, which will receive mixed feedstock of Oman crude oil and atmospheric residue from Oman Refinery Company. The refinery will have a crude unit with a capacity of 116 400 b/p/d and an RFCC unit with a capacity of 75,260 b/p/d. Propylene production will be approximately 340,000 t/p/y. The refinery should start its commercial operation in September 2006.

Oman Oil Company (60%), with LG International Corporation (20%) and Gulf Investment Corporation (20%) has formed Oman Polypropylene. OPP will construct, own and operate a Polypropylene Plant at Sohar Industrial Area adjacent to the planned Sohar Refinery Company, where feedstock and utilities are supplied. The plant will have a capacity of 340,000 t/p/y of polypropylene. It will be capable of producing a range of homo-polymers and random co-polymers. Completion of the project is schedule for 2006.

The Sohar Aluminum Smelter project will produce high grade aluminium products. The joint venture has been created in 2005, with Oman Oil Company, the Abu Dhabi Water and Electricity Authority and the Alcan Inc. Once commissioned, the company will offer an installed capacity of 330,000 tonnes per annum (TPA) and is expected to contribute almost 2 per cent of the country’s GDP. The project achieved Financial Close on the 11th of December 2005. Construction activity has already started on site.

Oman Petrochemical Industries Company is a joint venture owned by Oman Oil Company (25%), the Government of Oman (25%) and The Dow Chemical Company (50%). OPIC will design, build and operate a petrochemical complex in the Sohar Industrial Port Area, which will comprise a gas cracker and three world-scale polyethylene production units.

Salalah Methanol Company has been formed in February, 2006 by Oman Oil Company (90%) and Oman Energy Trading Company (10%). SMC is to undertake a project to build a state-of-the art methanol production facility in Salalah Free Zone. The project includes 3000 metric tons per day methanol plant. The commercial operations will commence during the first half of 2009.

Oman Gas Company was established in August 2000 by Oman Oil Company (20%) and the Government of Oman (80%). OGC owns and operates the country’s gas transportation facilities, which mainly supplies the Power Generation Plants and other small consumers. In 2002, OGC completed the construction of two major pipelines, from Fahud to major industry in Sohar and from Saih Rawal to Salalah Port & Free Zone. In 2005, OGC has delivered 6.0 billion sm3.