Salalah Methanol Company (SMC), a wholly owned subsidiary of Oman Oil Company (OOC), celebrated the financial closure for Salalah Ammonia Plant, a sustainable project that will significantly contribute to the development of downstream sector in Dhofar Governorate and the Sultanate’s diversification plans. The ceremony, held in Grand Millennium Muscat, was attended by Isam bin Saud al Zadjali, (pictured) CEO of Oman Oil Company. Also in attendance were representatives from the government and private sectors, as well as a number of local and international financial institutions.
SMC successfully secured a 12-year $728 million recourse project finance facility, which has been oversubscribed (around 2.5 times of required facility amount) from a mix of international, regional and local financial institutions. The facility will be used to refinance SMC’s existing debt, while the remaining $443 million to be allocated to the development of the ammonia plant.
Total investment in the ammonia project is pegged at $456 million, according to officials.
Highlighting the importance of the ammonia project, OOC CEO Isam al Zadjali said: “This vital project is in line with the economic diversification of the Sultanate and part of OOC’s growth strategy, which aims to contribute to value creation. Setting up the ammonia plant is an important milestone for high value-added petrochemical industries and key to opening up for new further downstream industries, and the creation of job opportunities.”
Najla al Jamali, Takamul acting Executive Managing Director, pointed out that “the Ammonia Project and all the agreements being commemorated today are the result of a wider plan to invest in the sustainable growth of the national downstream industries, and the development of existing local assets. We continuously look for opportunities to expand our industrial footprint, working with global partners to bring technical expertise and investment to help diversify Oman’s economy and create meaningful employment.”
Awadh al Shanfari, SMC’s Managing Director, added: “Salalah Ammonia Project has been able to successfully secure limited recourse financing amid challenging global financial and economic conditions.
This reflects the trust that financing institutions have placed on the project and the financing structure, which is demonstrated by the fact that the lending group comprises of local, regional as well as international lenders.”