Duqm Refinery to seek $6 bln bank funding
Oman’s Duqm Refinery and
Petrochemical Industries Co will approach banks in about two weeks for the debt
financing it needs to back a $6 billion refinery project, banking sources
familiar with the matter told Reuters on Monday.
The refinery, run by the joint
venture between Oman Oil Company and Kuwait Petroleum International, will be
able to process 230,000 barrels of crude per day and occupy 900 hectares in the
Duqm industrial zone, which expects investments of up to $15 billion over the
next 15 years.
This zone is Oman’s biggest
single economic project and part of the Gulf Arab Sultanate’s efforts to
diversify its economy away from oil revenues.
The project financing for the
refinery will involve regional and international banks, which will receive an
information memorandum in about two weeks, the sources said.
Duqm Refinery did not
immediately respond to a request for comment.
The financing for the project,
on which Credit Agricole is working as financial adviser, is expected to be
completed in two to three months, the sources said.
The financing is expected to
include loans backed by export credit agencies from countries including Italy,
Spain and South Korea. It will also likely include an Islamic debt tranche.
- Reuters