OMAN: Orpic signs USD 2.8-billion loan agreement for financing PC, refining projects

Earlier this year, Orpic said it hoped to raise USD 3-billion to help fund three major projects and reduce debt.

One project that will benefit from the loan is the Liwa Plastics Project, which is being set up adjacent to Orpic's Sohar refinery. It involves an 800,000-t/y ethylene cracker that will supply feedstock for the production of 420,000 t/y of high-density polyethylene, 420,000 t/y of linear low-density polyethylene and 215,000 t/y of polypropylene.

The loan will also be used for an expansion of the Sohar refinery to 180,000 b/d from 116,000 b/d, and the 290-km Muscat-to-Sohar pipeline being built to add flexibility to Orpic's operations.

The loan agreement "is a reflection of the robustness of our business, the viability of our vision, and the commitment we have demonstrated,” said Orpic Chief Executive Musab Abdullah Al Mahruqi. "We have proved that we are a business worthy of significant investment as we continue to transform Orpic in the coming five years.”

Source: Weekly "PetroChemical News", Durham, NC, USA; 12 May 2014
(Syed Rashid Ali, Karachi, Pakistan)