Dr Mohammed bin Hamad Al Romhi, minister of oil and gas and board chairman of Omani Aromatics Co; and deputy chairman of Oman Oil Co. board; yesterday signed the engineering and construction agreement for the construction of the aromatics factory at Sohar Industrial Estate in cooperation with GS Engineering and Construction Co. of South Korea and LG International.
K.R. Kim, president and chief executive officer, signed on behalf of GS Co. and G. A. Young, executive vice-president on behalf of LG International.
Dr Al Romhi stated that the project was a new approach of Oman Oil Company to develop the petrochemical sector in the Sultanate. He said the project would endeavour to promote and develop the down stream projects in Oman serving a wider range of local investment and providing employment opportunities to the Omani youth.
Dr Al Romhi said that engineering and construction of the plant would commence on August 6 and production would start in the second half of 2008. He added that oil and gas projects being executed by Oman Oil Co. would increase the Sultanate’s national income and transform Oman from a crude oil and LNG-producing country to manufacturer of oil derivatives.
Oman Aromatics Co. is a joint investment venture. Oman Oil Company has 60 per cent stakes, Oman Refinery Co. and LG International 40 per cent equal stakes. The total cost of the project is estimated at $1.6 billion.
The aromatics factory will be constructed at Sohar Industrial Estate at international standard levels using state-of-the-art technologies to produce the poraxylene and benzene. Poraxylene is a key raw material in the production of polyester fibres and pet plastic bottles. Benzene is an industrial chemical that is used to produce a wide range of plastics (polystyrene, nylon) and other chemicals. — ONA
