23/09/2003 – Oman Polypropylene LLC (OPP) has mandated Arab Petroleum Investments Corporation (APICORP) as Structuring Bank to formulate a suitable financing strategy and structure for OPP’s proposed new polypropylene plant to be constructed in Sohar, Oman. Financial Close is expected in the second quarter of 2004.
Background Information on the OPP Project
OPP is owned by Oman Oil Company (60%), ABB Lummus Project Participation BV (20%), and LG International Corp. (20%). The project will have an initial nameplate capacity of 340,000 tonnes per annum of various grades of polypropylene. Propylene feedstock will be supplied by the Sohar Refinery Company, which is currently constructing a new 116,000 barrels per stream day deep conversion refinery on an adjacent site in the Sohar Industrial Area, Oman. The refinery will also supply various utilities to the OPP plant. Construction of the OPP plant is scheduled to commence in 2004 and will be undertaken by a consortium of ABB and LGI. LGI will also act as Marketer and Offtaker for the polypropylene produced by the plant.
Background Information on Arab Petroleum Investments Corporation (APICORP)
APICORP, a corporation which is registered in Saudi Arabia and has its head office in Dammam, was established in 1975 by ten Member States of the Organisation of Arab Petroleum Exporting Countries (OAPEC). The corporation, which operates on a commercial basis, aims to promote the development of the hydrocarbon sector in the Arab World. Pursuant to this, the company has taken equity positions in new projects and companies throughout the Middle East and North Africa. In addition, APICORP has played a leading role in developing project financing structures in the region and has acted as an Arranger on most of the major hydrocarbon related financings in the region in recent years. APICORP also provides financial advisory services to project sponsors throughout the Middle East and North Africa.