Oman to sign $5 billion contract with LPIC

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Tuesday 08 Dec 2015 - 16:36 Makkah mean time-26-2-1437 (Image from Oman Observer) Muscat, (IINA) - Oman Refineries and Petroleum Industries Company (ORPIC) will sign on December 17 the engineering, procurement and construction (EPC) contracts for Liwa Plastic Industries Complex (LPIC) that will cost more than $5 billion, ONA reported. ORPIC Director General of Supportive Services Hilal Al-Hinai said in a statement to ONA that the company will sign more than 30 agreements on December 17, which will include engineering, predicament, and construction of LPIC, as well as the finance agreements with the export guarantee agencies and banks. In addition, gas supply agreements with the Ministry of Oil and Gas as well as the land agreements with Sohar Industrial Port, Sohar Free Zone and the Ministry of Housing will be signed. Al-Hinai pointed out that ORPIC seeks to get more than $4 billion worth of finance to set up the project. This amount represents about 80% of the $5.2 billion cost of the project. He added that when LPIC is completed by 2019, it will not only ensure higher returns for ORPIC shareholders but will diversify ORPIC’s product mix and develop the downstream manufacturing industries for the plastic products. It will also create many business and job opportunities and enhance ORPIC’s position at the petrochemical markets. It will also help in getting experience and modern technology. He pointed out that the project is expected to contribute 2% of Oman’s GDP. After the operation of the project, which is the biggest manufacturing project in oil and gas industry in Oman, the production of plastic is expected to increase by more than one million ton. It is noteworthy that the increase will raise ORPIC’s production to 1.4 million tons of polyethylene and polypropylene and will make it more capable of achieving bigger benefits to the oil and gas produced by Oman. AG/IINA