Oman’s flagship Orpic’s privatisation plan on track

The company is currently focused on strengthening its commercial appeal, as well as boosting ties with its stakeholders

Sept 8: Plans for the privatisation of the wholly-government owned refining flagship Oman Oil Refineries and Petroleum Industries Company Limited (Orpic) are on track, although a timeframe for the landmark move has not yet been decided, according to a top official of the company.

Musab al Mahrouqi ( pictured), Chief Executive Officer, said the proposed disinvestment plan — via an Initial Public Offering on the Muscat Securities Market — underscores Orpic’s strategic importance as sole provider of the nation’s requirement of refined fuels, and an emerging petrochemicals giant as well.

“There have been a couple of announcements by senior government officials that Orpic is on track to be privatised. We are very excited about this opportunity. We see this as a motivational element for the organisation, as well as the parent group (Oman Oil Company) in general and we are already working to maximise the available capabilities within the company,” Al Mahrouqi said during a media briefing following a tour of Orpic’s sprawling refinery complex at Sohar Industrial Port.

Orpic, he said, was currently focused on strengthening its commercial appeal, as well as strengthening ties with its stakeholders. “The relationships we have with the various stakeholders, including the government, are being strengthened further in light of the prospect of an IPO. We use this (prospect) all the time in our discussions and stress the need to build a strong commercial company that’s able to attract local and international investors at that point of time.”

Orpic, which currently owns and operates the nation’s two refineries at Mina al Fahal and Sohar as well as the aromatics and polypropylene plants integrated with the Sohar facility, is investing an estimated $7 billion in a trio of projects that will elevate the company into one of Oman’s most valuable and strategically important undertakings.

Orpic’s flagship Sohar Refinery

is currently subject of a major expansion and modernisation at a cost of around $2.6 billion. Dubbed the Sohar Refinery Improvement Project (SRIP), the upgrade will enhance the refining capacity of the plant by around 70 per cent as well as increase the production of gasoline, diesel, propylene, naphtha and bitumen. Next year, Orpic plans to kick off construction work on a major petrochemicals project alongside its Sohar complex. The Liwa Plastic venture (LPIC) is an estimated $.4.2 billion project that will double Orpic’s profitability.