Oman to build $879 million refinery

Jan. 7, 2003
Oman awarded an $879 million contract to a Japanese consortium of JGC Corp. and Yokohama-based Chiyoda Corp. for construction of a new refinery at Sohar, 250 km northwest of Muscat.

By an OGJ correspondent

NICOSIA, Jan. 7 -- Oman awarded an $879 million contract to a Japanese consortium of JGC Corp. and Yokohama-based Chiyoda Corp. for construction of a new refinery at Sohar, 250 km northwest of Muscat.

The facility, which will have a capacity of 75,000 b/d, is to be completed by the second quarter of 2006, the consortium said.

The official Oman news agency said around 10% of the new refinery's production would be used for domestic consumption, with the remainder left for export.

Oman currently has one refinery at Mina al-Fahal, which was constructed in 1982 and produces around 85,000 b/d for domestic consumption.

The new refinery also will produce 350,000 tonnes/year of propylene to supply a polypropylene plant to be built in Sohar's industrial port.