Jul 21 2004
The Government of the Sultanate of Oman, Oman Oil Company S.A.O.C. (OOC) and The Dow Chemical Company (DOW) announced today an agreement to form a joint venture that will design, build and operate a petrochemical complex in Oman.
The joint venture will be owned 50% by Dow, 25% by the Government of Oman and 25% by OOC.
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.
"This project is a further milestone in the Omani Government's continuing efforts to develop Al Batinnah Region by promoting foreign investment which will contribute to job creation, in addition to laying the foundation for future downstream industries" said H.E. Ahmed Macki, the Minister of National Economy and Deputy Chairman of Financial Affairs and Energy Resources Council.
H.E. Maqbool Ali Sultan, Oman's Minister of Commerce & Industry and Chairman of OOC added "With a strategic partner such as Dow, we are confident this project will be a success."
"This project is another important step in achieving Dow's strategy of having cost competitive geographic and product positions that will enable value growth," said William S. Stavropoulos, Chairman and CEO of The Dow Chemical Company.
"This is a tremendous opportunity which provides significant access to cost-competitive feedstock to supply the fast-growing markets of Asia," said Andrew Liveris, President and Chief Operating Officer of The Dow Chemical Company, "The Middle East will play an increasingly strong role in the global petrochemical industry and this joint venture will expand Dow's presence in the region."
"This joint venture will combine the natural gas resources of Oman with Dow's state-of-the-art technology position, operational expertise and marketing know-how," said Romeo Kreinberg, Senior Vice President for Plastics, The Dow Chemical Company. "This combination will be the foundation of a strong and successful partnership that has tremendous potential to attract downstream customers, manufacturing opportunities and additional investments well into the future."
Construction of the petrochemical complex is expected to begin in 2005.
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