Italian export credit agency SACE has guaranteed US$100mn allocated by HSBC Bank for financing the modernisation of Sohar Refinery, which is owned and operated by Oman Oil Refineries and Petroleum Industries (ORPIC)
The amount granted by SACE will be used by ORPIC to finance an engineering, procurement and construction (EPC) contract with several Italian enterprises for the supply of equipment and machinery as part of the expansion project of the refinery, according to a press statement.
The overall project, worth US$2.8bn provided by several export credit agencies and commercial banks, will lead the refinery to boost production capacity by 70 per cent, from 116,400 bpd to 198,000 bpd.
The Sohar plant supplies refined products like gasoline, diesel, fuel oil, LPG and other hydrocarbons mostly to the domestic market, and provides propylene and naphtha to two petrochemical companies controlled by ORPIC, Times of Oman reported.
According to industry sources, the Middle East has proved to be greatly attractive for Italian enterprises and is an increasingly relevant area for the SACE.
According to forecasts from the last SACE export report, Italian sales in the region will grow by an average of nine per cent over the next four years.
