Domestic Projects Under Development

1)     Oman Petrochemical Industries Company

2)     Salalah Methanol Company

Oman Petrochemical Industries Company LLC
(OPIC)

Oman Petrochemical Industries Company is a joint venture owned 25% by Oman Oil Company (OOC), 25% by the Government of Oman and 50% by The Dow Chemical Company.

Oman Oil Company (OOC), the Government of the Sultanate of Oman, and The Dow Chemical Company formed a joint venture that will design, build and operate a petrochemical complex in Oman.

Located in the Sohar Industrial Port Area, the petrochemical complex will comprise feedstock production facilities, a gas cracker, as well as three world-scale polyethylene production units based on state-of-the-art catalyst and process technology.  Further, the joint venture will facilitate the development of downstream industries in Oman that will convert polyethylene to end-products in Oman thus enhancing the level of job creation that will result from the complex.

Salalah Methanol Company 

Formed in February, 2006 by Oman Oil Company acquiring 90% and Oman Energy Trading Company whom acquire 10% is to undertake a project to build a state-of-the art, methanol production facility in Salalah Free Zone, in Salalah, Oman.

The project includes 3000 metric tons per day methanol plant and related utilities and off-sites, as well as the export facilities. The plant includes captive power generation, water desalination units and a waste water treatment plant to make SMC self-sufficient and environmentally friendly. The feedstock for the production of methanol is dry sweet natural gas supplied by Ministry of Oil and Gas through the existing pipeline that is already operational. However, the commercial operations will commence during the first half of 2009.

International Projects Under Development

1)     Dunga Project Kazakhstan
2)     North Caspian Sea
3)     Qingao Lidong Chemical Co Ltd
4)     China Gas Holdings

Dunga Project  Kazakhstan

Oman Oil Company Limited (OOCL) 20%, Partex 20%, Maersk 60% (Operator)     
The Dunga Field is located 50 km to the North of Aktau city and OOCL obtained an operating license for the field in 1996. The 1^st phase Pilot Project was completed in 2001 which included the drilling of seven wells and the construction of the Surface Facilities. The 2^nd appraisal phase commenced in 2002 to evaluate the fields' production performance under various development schemes. Full field development plan is being prepared and will be submitted to the authorities for approval before the end of 2006.

North Caspian Sea

Oman Oil Company blocks in the Kazakh sector of the Caspian Sea.

Oman Oil Company has preferential rights to negotiate a Production Sharing Agreement for two offshore blocks in the Kazakh side of the Caspian Sea.

Qingdao Lidong Chemical Co. Ltd

Oman Oil Company S.A.O.C. (“OOC”) acquired 30% equity interest in the Qingdao Lidong Chemical Co. Ltd (“QLCC”), an aromatics petrochemical plant, promoted by the GS Calpex, in the Peoples Republic of China.

The QLCC petrochemical plant has a capacity of 1.17m tons of Aromatic products(e.g.;  Paraxylene,  Benzene, Toluene and  Raffinate). The feedstock for the project will be supplied by one of the refineries owned by the GS Calpex. The plant is located in the Qingdao province in China, the area that was specifically developed as a specialized petrochemical investment zone with special tax exemptions and proximity to Korea, which is the major source for the feedstock. The company would start production by end of 2006.

China Gas Holdings Ltd.

Oman Oil Company S.A.O.C. (OOC) entered into a share subscription agreement for the purchase of 8% of the issued shares of China Gas Holdings Ltd, a public listed at the Honk Kong Exchange stock market.

China Gas principally engages in the investment, operation and management of city gas pipeline infrastructure, in the distribution of natural gas to residential and industrial users, in the construction and operation of oil stations and gas stations, and in the development and application of oil and natural gas related technologies.                                 

By purchasing shares in China Gas Holdings, OOC joins other strategic investors such as Sinopec of China and GAIL (India) Ltd. in the exclusive piped gas development rights of approximately 50 Chinese municipalities located in nine different provinces, with a pipeline network of more than 3,700 kilometres.