Saturday 23 June 2018

Image courtsey: ONA

Key deals for Salalah LPG extraction project signed

MUSCAT, July 12, 2017

Oman Gas Company, a unit of Oman Oil Company, has signed key agreements related to Salalah LPG project, said a report.

An agreement was signed with the Ministry of Oil and Gas on the right to build, own and operate the LPG extraction facilities, said the Times of Oman report.

The agreement was signed by Eng Salim bin Nasser Al Oufi, undersecretary of the Ministry of Oil and Gas, and Eng Isam bin Saud Al Zadjali, CEO of Oman Oil Company, owner of Oman Gas Company, it said.

An agreement has also been signed with Oman Trading International Company to market the LPG.

It has also entered into an agreement with Salalah Free Zone Company on the sub usufruct of about 20 hectares for the project at Salalah Free Zone.

A lease agreement was signed with Salalah Port Services to allocate about 8 hectares for the LPG export facilities at Salalah Port.

About $640 worth credit facilities agreements were also signed with a number of local, regional and international financial companies.

Al Oufi said that the estimated cost of the project is about $820 million and that it will produce about 300,000 tonnes of liquefied gas.

He added that the project will create 140 job opportunities at the operation state. The annual income of the project is expected to be $200 million.

While about 10 per cent will be utilised at the local market, 80 to 90 per cent will be exported through International Marketing Company, added the report.

Tags: | project | Salalah LPG |

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