05 December 2012
MUSCAT -- Oman Oil Company (OOC) and LG International (LGI) have signed a Joint Development Agreement for implementation of a Purified Terephthalic Acid (PTA) and Poly Ethylene Terephthalate (PET) project in Port of Sohar. The new company will be owned 70 per cent by OOC and 30 per cent by LG International.
Nasser bin Khamis al Jashmi, Under-Secretary of the Ministry of Oil and Gas and Chairman of OOC, signed the agreement on behalf of the ministry while Kent Lee signed on behalf of LG International in his capacity as Senior Vice-President.
A new joint venture (JV) company will be established to carry out the project in accordance with international standards to produce, in two phases, a total of 1.1 million tonnes of PTA and 500,000 tonnes of PET per annum.
The project is estimated to cost $850 million and to be operational by the end of 2016.
Al Jashmi said in a statement to Oman News Agency (ONA) that "the development of the PTA/PET complex is an important investment project which will enable further downstream projects based on PET.
In addition, the project will make available additional training and employment opportunities for Omanis."
The project confirms the economic importance of setting up diversified industrial projects in Port of Sohar and supports the government's efforts in diversifying the national economy and attracting foreign direct investment into the country, Al Jashmi added.
He pointed out that the project will support In-Country Value and contribute to the Omani economy by way of engagement of local contractors and suppliers, use of feedstock produced by the aromatics complex in Sohar owned by Oman Refineries and Petroleum Industries Company (Orpic) and the use of Sohar Port for import of plant equipment and other raw materials.
On his part Kent Lee, Senior Vice-President of LGI, said, "This project is a very important project for our two countries.. We are determined to exert all necessary efforts to see the project is successfully operational by 2016.
"Our solid partnership with Oman Oil Company gives us confidence in achieving that."
PTA is the raw material for PET which is in the shape of small white plastic chips and its major use is in the production of bottles for packaging of carbonated soft drinks, drinking water, cosmetics, pharmaceuticals and food.
PET sheets are used to make food trays, while PET films are used for wrapping. Special grade PET is used for making industrial fibres for safety belts and straps.
Oman Oil Company was incorporated in 1996 to pursue investment opportunities in the energy sector both within the Sultanate and abroad.
Through participation in energy and energy-related projects, the company plays an important role in the Sultanate's efforts to diversify the Omani economy and to promote Omani and foreign private sector investment.
MUSCAT -- Oman Oil Company (OOC) and LG International (LGI) have signed a Joint Development Agreement for implementation of a Purified Terephthalic Acid (PTA) and Poly Ethylene Terephthalate (PET) project in Port of Sohar. The new company will be owned 70 per cent by OOC and 30 per cent by LG International.
Nasser bin Khamis al Jashmi, Under-Secretary of the Ministry of Oil and Gas and Chairman of OOC, signed the agreement on behalf of the ministry while Kent Lee signed on behalf of LG International in his capacity as Senior Vice-President.
A new joint venture (JV) company will be established to carry out the project in accordance with international standards to produce, in two phases, a total of 1.1 million tonnes of PTA and 500,000 tonnes of PET per annum.
The project is estimated to cost $850 million and to be operational by the end of 2016.
Al Jashmi said in a statement to Oman News Agency (ONA) that "the development of the PTA/PET complex is an important investment project which will enable further downstream projects based on PET.
In addition, the project will make available additional training and employment opportunities for Omanis."
The project confirms the economic importance of setting up diversified industrial projects in Port of Sohar and supports the government's efforts in diversifying the national economy and attracting foreign direct investment into the country, Al Jashmi added.
He pointed out that the project will support In-Country Value and contribute to the Omani economy by way of engagement of local contractors and suppliers, use of feedstock produced by the aromatics complex in Sohar owned by Oman Refineries and Petroleum Industries Company (Orpic) and the use of Sohar Port for import of plant equipment and other raw materials.
On his part Kent Lee, Senior Vice-President of LGI, said, "This project is a very important project for our two countries.. We are determined to exert all necessary efforts to see the project is successfully operational by 2016.
"Our solid partnership with Oman Oil Company gives us confidence in achieving that."
PTA is the raw material for PET which is in the shape of small white plastic chips and its major use is in the production of bottles for packaging of carbonated soft drinks, drinking water, cosmetics, pharmaceuticals and food.
PET sheets are used to make food trays, while PET films are used for wrapping. Special grade PET is used for making industrial fibres for safety belts and straps.
Oman Oil Company was incorporated in 1996 to pursue investment opportunities in the energy sector both within the Sultanate and abroad.
Through participation in energy and energy-related projects, the company plays an important role in the Sultanate's efforts to diversify the Omani economy and to promote Omani and foreign private sector investment.
© Oman Daily Observer 2012
