Oman Oil Facilities Development Company LLC, subsidiary of the Sultanate’s investment arm Oman Oil Company, is in an advanced stage to secure 75% funding for its $600m liquefied petroleum gas (LPG) extraction project in Salalah, Times of Oman reported, citing an official at Oman Oil Company.
As informed on Zawya, the financial closure of around 75% of the investment is expected to be finalized within the second half of 2017, according to Oman Oil Company’s Executive Managing Director, Hilal Al Kharusi. The company is discussing partial financing for the project with several international banks and export credit agencies.
The project has been developed by Salalah LPG SFZCO LLC, which is a wholly owned subsidiary of Oman Oil Facilities Development Company. The project is going to be built by the UK-based international oil services contractor Petrofac.
The Salalah LPG extraction venture is expected to start operations in 2020, and will produce different types of LPG, mainly propane, butane and light condensate from natural gas flowing through Oman Gas Company’s southern grid.