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Oman Refinery Company signs $1.37b financing deal with banks

MUSCAT — Oman Refinery Company (ORC) has signed a $1.37 billion financing agreement with local, regional and international banks. The amount will be used mainly to prepay existing debt facilities at Sohar Refinery Company (SRC) and ORC ahead of the merger of the two companies.

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By Our Correspondent

Published: Mon 8 Oct 2007, 8:57 AM

Last updated: Sat 4 Apr 2015, 11:24 PM

Dr Adil Abdul Aziz Al Kindy, CEO of ORC, signed the agreement with representatives of the participating banks. The loan will be repaid over 10 years with the first instalment due in March 2008.

The government has decided to merge SRC with ORC to create a world-class refining company. The merger will be implemented by the absorption of SRC by ORC which will be renamed Oman Refineries and Petrochemicals Company (ORPC).

The merger will not result in the creation of a new company, but will be implemented by the transfer of SRC's assets and liabilities to ORC. In parallel with the merger, ORPC's shareholding will change.

It is currently fully owned by the government through the Ministry of Oil and Gas and the Central Bank of Oman. Following the merger, ORPC will be owned 75 per cent by the government through the Ministry of Finance, and 25 per cent by Oman Oil Company. With the implementation of the merger, Oman's two refineries — ORC in Mina Al Fahal (Muscat) and SRC in Sohar — will be combined. The two refineries are connected by a 250-km pipeline.

Our Correspondent

Published: Mon 8 Oct 2007, 8:57 AM

Last updated: Sat 4 Apr 2015, 11:24 PM

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