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Oman : ORPIC SOHAR gets $100 million from ITALY'S SACE agency

June 2, 2014

Muscat Oman Oil Refineries and Petroleum Industries Company s (Orpic) Sohar refinery expansion plans got a boost as the company secured a $100 million loan.

The loan was guaranteed by Italian export credit agency SACE to finance oil and gas technology exports from Italy in the modernisation and expansion of its Sohar refinery.

Orpic will use the loan to finance an engineering, procurement, and construction (EPC) contract with several Italian outfits for the supply of equipment and machinery in the Sohar project. The loan guarantee from SACE follows Orpic s announcement that it signed a $2.8 billion loan agreement with a consortium of 21 international and national financial institutions to help fund the company s projects, including the Sohar Refinery Improvement Project (SRIP).

Orpic said that it would use the loan amount of $2.8 billion from the consortium to finance other projects as well.

SRIP is designed to improve the plant s ability to overcome existing technical constraints associated with processing the changing quality of Oman export blend crude, meet international environmental standards, serve growing domestic demand for refined products, and enhance the refinery s competitiveness and profitability.

The refinery s residue catalytic cracker unit is to improve the quality and quantity of petrol, diesel, naphtha and propylene production from the plant, SRIP will involve integrating 5 new units at the refinery, including a hydrocracker and coker.

Orpic will boost the Sohar refinery s crude throughputs by 70% by adding 82,000 barrels per day of new OEB crude oil processing capacity to achieve a total refining capacity of 198,000 barrels per day.

Earlier, Orpic was looking to raise around 65.45 million rials ($170 million) to fund the Muscat-Sohar pipeline.

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Source: TendersInfo (India)

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