Wednesday 26th, October 2016

Omani-Indian joint venture Sebacic Oman to invest around $1.2 billion in the establishment of a major bio-refinery complex at the Duqm Special Economic Zone (SEZ).

The investment, envisaged in three phases over a 10-year timeframe, will result in the establishment of one of the world’s largest complexes dedicated to the production of an array of products derived from sebacic acid, which itself is extracted from castor oil.

Currently under construction adjacent to the site of the $6 billion Duqm Refinery project, the JV also sees immense potential for investment in downstream industries that will utilise feedstock from both the bio-refinery as well as the oil refinery.

Underscoring the importance accorded by the Omani government to the project, top officials from the SEZ Authority of Duqm (SEZAD) joined local dignitaries and guests at the foundation-stone laying of Sebacic Oman’s plant at Duqm yesterday. Yahya bin Said al Jabri, Chairman of SEZAD Board of Directors, was accompanied by the Wali of Duqm and other personalities at the ceremony.

Speaking to the Observer, Sebacic Oman’s CEO, Pradeepkumar Nair, said the sebacic acid plant represents the first phase of a longer-term strategy to position Duqm SEZ and Oman as a world-scale hub for sebacic acid based derivatives.

Extracted from castor oil, sebacic is used in many industries, such as chemicals, plastics, and pharmaceuticals. It is also used as an intermediate ingredient in the manufacture of detergents, paints and perfumes.  Phase 1, currently under construction with an investment of $62.7 million, will come on stream before the end of 2017, said Nair. “We will start with the production of sebacic (30,000 tonnes per annum) and bio-plasticisers from day 1, followed by nylons and biopolymers. Phase 2 will commence in 2018 with an investment of around $250 million, while Phase 3 is planned during 2022-24 with an investment of a further $450 million. We also plan to float an Initial Public Offering (IPO) within the next 10 years.” A biopolymer refinery envisioned as part of the Sebacic Oman complex will be integrated with the hub’s centrepiece bio-refinery. “Sebacic is a $10 billion global industry that we want to bring to Oman,” the CEO said. “Offtake agreements have already been signed for our products, which will be shipped to US, European, Chinese and Japanese markets.” Further, with a view to supporting value-addition in-country, Sebacic Oman is in discussion with Sultan Qaboos University (SQU) to establish a sebacic-based centre for innovation and business development in the Sultanate. The goal is to introduce sebacic-based technologies to young Omanis, he said.

Shaikh Hilal bin Khalid al Maawali, Chairman of Sebacic Oman SAOC, said that the allocation of ample land by SEZAD will allow for the progressive expansion of the project. Besides creating hundreds of jobs for Omanis, the project will also introduce the Sultanate to sophisticated technologies, he added.

Also present at the foundation stone laying ceremony were high-level representatives of SEZAD, Meethaq Islamic Banking by Bank Muscat, Bauer Nimr, and Port of Duqm, among other government and private sector organisations.

© Oman Daily Observer 2016