Duqm Refinery achieves closure of Oman’s largest project financing
Times News Service
MUSCAT: Duqm Refinery announced the financial closure of its $4.61 billion multi-sourced, Sharia-complaint project at a dinner held at the Intercontinental Hotel in Muscat.
Speaking on the occasion, the President of Kuwait Petroleum International and Chairman of Duqm Refinery, Nabil Bourisli, said, “This achievement reflects the strength and stability of the Omani and Kuwaiti economies. It also reflects the trust and confidence placed by local, regional and international financial institutions in our economic ties that are deeply rooted in history. Our vision is aimed at maximising the value of our natural resources and driving the two countries towards expanding their economic potential that leads to balanced economic growth.”
“This is indeed a very important milestone for the project. It reflects the trust that financial institutions have placed in the project; it will no doubt be one of the key economic drivers for Sezad,” Eng. Hilal Al Kharusi, Vice Chairman of the Board of Directors of Duqm Refinery, said.
“Setting up the Duqm Refinery and Petrochemical Industries Company was an important milestone for petrochemical industries and the key to establishing new downstream industries and creating job opportunities,” he added. “Kuwaiti banks were involved in financing the project, achieving 32 per cent of the total loan amount. This was driven by the importance of the project, as well as the strategic partnership between the two countries,” Eng. Khalid Al Mushaileh, vice president of Kuwait Petroleum International, said.
“The $4.6 billion multi-sourced financing agreement signed for the project made it not only the largest project financing in the Sultanate, it also included the largest Sharia-compliant facility awarded to a Greenfield project in the country provided by a consortium of Islamic financing institutions,” said Mubarak Al Naamany, Chief Financial Officer of Duqm Refinery. “Facilities were provided by 29 reputed financial institutions from 13 countries and guarantees from three major ECAs,” he added.
MAJOR MILESTONE: Achieving multi-source project financing for the Duqm Refinery project was a major milestone.