OMANS KEY INDUSTRIES

Though the Government is making all-out efforts to reduce the dependence of Omans economy on the oil income, the country still remains an oil-based economy. The Government has accelerated its efforts and intensive industrialisation process is on in recent years.

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OMANS KEY INDUSTRIES

PETROLEUM DEVELOPMENT OMAN

Petroleum Development Oman (PDO) is the foremost exploration and production company in the Sultanate. It accounts for more than 70 per cent of the countrys crudeoil production and nearly all of its natural-gas supply. It is a limited liability company jointly owned by the Government of Oman (60 per cent), Royal Dutch Shell (34 per cent), Total (four per cent) and Partex (two per cent). PDO finds oil fields and develops them into productive assets by drilling wells and constructing and operating various hydrocarbon treatment and transport facilities. The crude produced from the fields is delivered to a storage facility at Mina al Fahal, where it is loaded on to oil tankers. The first economic find of oil in Oman was made in 1962, and the first export of Omani oil took place on 27 July 1967. The consignment consisted of 543,800 barrels of oil valued at $1.42 a barrel. Due to new sources of oil, production averaged to 341,000 barrels per day in 1975. In the early 1980s, production rose to new levels. By the end of 1984, average daily production had risen to 400,000 barrels a day and reserves stood at 3.8 billion barrels. By the end of 2000, PDO witnessed an increase in production. This was due to the increase in production from the application of the latest technology to increase oil recovery in existing fields. And some of the production increase over the years was made up of new oil from fields that were not only found but also developed at a faster pace. During the period 1967-1980, all of PDOs production came from 11 fields; by 1988, 50 fields provided the sum total of PDOs oil output; by 1990 it was 60, and in 1999 it was nearly 100. As of today PDO produces more than 800,000 barrels of crude per day. In 1996, PDO concluded an agreement with the Government to develop the central Oman gas fields in order to supply gas to an LNG plant in Qalhat, near Sur. This upstream LNG project, costing $1.2 billion, is the single biggest project in PDOs history. The Saih Rawl Central Processing Plant and the gas pipeline from Saih Rawl to Qalhat were dedicated to the nation in November 1999, the first downstream cargo of LNG was shipped to Korea in April of 2000, and His Majesty the Sultan officially opened the LNG plant six months later.

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OMAN LNG LLC

Oman LNG LLC is the largest public/private joint venture in the Sultanate of Oman. Natural Gas is also the largest revenue contributor after oil to the Government of Oman and its people. Oman LNG is engaged in the production and sale of LNG (liquefied natural gas) and natural gas liquids. It undertakes activities to liquefy, store, transport and market Omans natural gas and delivering LNG to international customers. It is a joint venture between the Government of the Sultanate of Oman, Royal Dutch and Shell Group, Total, KOLNG, Partex, Mitsubishi, Mitsui and Itochu. Oman LNG produces gas from Barik, Saih Nihayda and Saih Rawl gas fields and transport to a gathering plant at Saih Rowl in the central Oman gas field, operated under the name of the Government of Oman by Petroleum Development Oman (PDO). It has a gas pipeline of 360 kilometres which is also operated by PDO. It was incorporated in 1994 with headquarters at Mina Al Fahal in Muscat. The Company operates three liquefaction trains at its site in Qalhat, near Sur, in the Sharqiyah region two owned by Oman LNG LLC and one owned by Qalhat LNG SAOC. The plant has capacity to liquefy 10.4 million tonnes per annum. The entire production is sold off by separate long term agreements to Korea Gas Corporation, Osaka Gas of Japan, Itochu Corporation (Japan) and Oman Refineries and Petroleum Company. The agreements are valid until 2025.

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SOHAR ALUMINIUM
The newest addition to the Middle Easts metals circuit and Omans first foray into the Aluminium industry, Sohar Aluminium has been breaking records since its inception. By implementing decades of industry insight in its design, specification and construction, Sohar Aluminium has been created to ensure efficiency, environmental protection and the utmost safety of its workforce. Noteworthy examples include the worlds longest single potline, the worlds highest known capacity ingot casters and innovative elevated walkways traversing the entire site to keep man and machine separate except when absolutely necessary. In many ways, Sohar Aluminiums development mirrors the Sultanate of Omans own emergence onto the world stage driving forward at a formidable pace, but all the while mindful and respectful of its cultural heritage and values. Sohar Aluminium intends to become a benchmark smelter while contributing to the sustainable development of Oman. Sohar Aluminium is a joint venture between Oman Oil (40 per cent), Abu Dhabi National Energy Company PJSC TAQA (a subsidiary of Abu Dhabi Water and Electricity Authority) (40 per cent) and Rio Tinto Alcan (20 per cent). Oman Oil Company is commercial entity owned in its entirety by the Government of Oman that actively pursues investment opportunities in the energy sector, both in Oman and abroad. TAQA was founded in 2005 with the objective of becoming a global leader in the energy sector. TAQA is 51 per cent owned by Abu Dhabi Water and Electricity Authority (ADWEA) and has a workforce of 2,800 drawn from 41 nationalities working in 13 markets across the world. Rio Tinto Alcan is the Aluminium division of the multinational Rio Tinto Mining and Metals Group and also the proprietors of Sohar Aluminiums benchmark AP36 smelting technology. Ranked as the worlds most modern smelter with its own 1,000 MW power station, Sohar Aluminium attributes the achievement of this major production milestone to its strategic focus on maximising operating efficiencies, continuous improvement and the dedication of its employees. Sohar Aluminium was formed in September 2004 to undertake a landmark Greenfield aluminium smelter project in the Sultanate of Oman. It reached full capacity on 19 February 2009 and merely 30 months later celebrated its one millionth ton production. Production capacity was also upgraded from 350,000 tons per year to 375,000 tonnes per year.

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OMAN REFINERIES AND PETROLEUM INDUSTRIES COMPANY (ORPIC)

Created from the integration of three companies Oman Refineries and Petrochemicals Company LLC (ORPC), Aromatics Oman LLC (AOL) and Oman Polypropylene (OPP) ORPIC is one of Omans largest companies and is one of the rapidly growing businesses in the Middle Easts oil industry. The refineries at Sohar and Muscat (Sohar Refinery and Oman Refinery), as well as the aromatics and polypropylene production plants in the Sohar complex, provide fuels, chemicals and feedstock to Oman and to the world. ORPIC has a team of more than 1,600 employees the majority Omanis working across the four plants with the common goal of building an integrated Omani refining and petrochemicals business which the nation is proud of. ORPIC is owned by the Government of the Sultanate of Oman and by Oman Oil Company SAOC, the commercial company wholly owned by the Government of the Sultanate of Oman created to pursue investment opportunities in the energy sector, both inside and outside Oman. ORPICs integrated complex includes four industrial plants operating at two locations, in Muscat and Sohar. The two locations are joined by a 266 kilometre pipeline, delivering feedstock from Mina Al Fahal Refinery to the Sohar plants. The plants take raw materials, the main one being Omani crude oil, and process them to create a series of important fuels and petrochemicals. Omani crude is processed in Mina Al Fahal into fuel products. In addition, the long residue from this refinery is transferred via the pipeline to Sohar Refinery where,

mixed with more Omani crude, it is refined to create fuels, naphtha and propylene. The naphtha is taken by the Aromatics Plant to create benzene and paraxylene, industrial chemicals used in the production of plastics. The propylene is taken by the Polypropylene Plant. Polypropylene is a widely-used thermoplastic polymer, which forms the basis of many different products everything from packaging to carpets to banknotes. Together, the four plants have a production capacity of 222,000 barrels per day of naphtha, liquid petroleum gas (LPG), gas oil, gasoline, fuel oil and jet oil; 818,000 metric tonnes per annum of paraxylene and 198,000 metric tonnes of benzene; and 350,000 metric tonnes of polypropylene. Aromatics Oman LLC (AOL) is a company established to construct and own a petrochemical complex and is owned by Oman Oil Company (OOC 79%), Oman Refinery & Petrochemical Company (ORPC 20%) and LG International Corporation (LGI-1%). The Aromatics Complex is a part of the development of a number of refinery based complexes at the Sohar Industrial Port Area, Sohar on the north east coast of Oman.

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AROMATICS OMAN LLC (AOL)

Aromatics Oman LLC is jointly owned by Oman Oil Company, Oman Refinery Company, and LG International. Oman Oil Company is the majority shareholder. The plant is located in the Sohar Industrial Port City. The project is launched at a cost of US $1.6bn and the Engineering, Procurement and Construction (EPC) Contract was executed by LG International Corporation and GS Engineering Construction Corporation of Korea under Technology Licence from Axens. Aromatics Oman started its commercial production on 4 February 2010, after successful completion of all the performance guarantee test runs. The main feedstock for the Aromatics Complex is Straight Run Naphtha with 28 per cent of requirement coming from next door ORPCs Sohar Refinery and balance 72 per cent from import. The plant feedstock processing capacity is 1.820 million tons per year. Aromatics Oman LLC has the capacity to produce 1.0 million tons per year of Aromatics with main products Para Xylene 817,413 tons per year and Benzene 198,441 tons per year. Para Xylene and Benzene are important raw materials for a wide range of petrochemical intermediaries and are used to produce a variety of consumer goods. Para Xylene is primarily used as a basic raw material in the manufacture of Purified Terephthalic acid (PTA) and Di-Methyl-Terephthalate (DMT). The PTA and DMT are used to manufacture Poly-Ethylene Terephthalate (PET) and a variety of Polyesters and Polymers. Polyesters are used to produce yarn, fibres and films. PET bottles are widely used for carbonated beverages because of good carbon dioxide barrier properties. In addition, they are light-weight, shatter-resistant and possess high tensile strength. Benzene is a key basic chemical for the manufacture of wide range intermediate products, including CycloHexane that makes Nylon. Benzene is also used to make Ethyl Benzene Styrene Monomer which is used to manufacture Poly Styrene and Rubber products. Benzene can also be used to make Cumene and Phenol which are used in healthcare products. Benzene is a basic raw material for Linear Alkyl Benzene which is used to manufacture soaps and detergents.

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OMAN OIL COMPANY SAOC

Oman Oil Company SAOC is a closed shareholding company wholly owned by the Government of the Sultanate of Oman. The Company was incorporated in 1996 to pursue investment opportunities in the energy sector, both inside and outside Oman. Originally headquartered in Bermuda, it was later on shifted to the Sultanate for more focussed operations. Through participation in energy and energy related projects, the Company plays an important role in the Sultanates efforts to diversify the Omani economy and to promote Omani and foreign private sector investments. The main objectives of the Company are: Contributing to the diversification of the Omani economy Facilitating foreign and private sector investments in Oman Generating revenue for the Government Creating jobs and providing job training Within Oman, the Company is focused on the development of oil and gas-based industries and other energy related projects in partnership with global industry players. The Companys investment portfolio includes Exploration & Production and related services, Infrastructure & Shipping, Refining & Marketing, Petrochemicals, Aluminium and Power. The Companys significant experience in project development and its unique shareholding as a government owned commercially managed company makes it a partner of choice in the energy sector in Oman. Outside Oman, the Company is actively pursuing commercial ventures in the energy value chain to provide an alternate source of revenue for the Government of Oman.

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OMAN DRYDOCK CO.

Oman Drydock Company S.A.O.C. (ODC) was established in September 2006 by the Government of Sultanate Oman with its 100 per cent stake under the Master Plan of Duqm area which is propelled to diversify Omans industrial growth. ODC is being operated by Daewoo Shipbuilding & Marine Engineering Co., Ltd (DSME) of South Korea, the leading shipbuilder in the world. DSME has entered into an Operating and Management (O&M) Contract with the Government in September 2006 for a period of 10 years, extendable for another 10 years. By utilising DSMEs well-organised, experienced and proven technology, and geographical advantages, ODC will have a bright future of revenue of about U$ 210 million and 3,500 employees by 2020. The construction work of the shipyard in Duqm is already completed and it is ready for commercial launch. Ship repair activity has already commenced and the Dock has by now undertaken repair of more than 12 ships of different sizes. The Government has planned to establish the dry dock at Duqm as a development programme of the Al Wusta region. According to Vision 2020, which is a long-term economic development plan in Oman, the Government aims to balance its economic development all over the country and to diversify its industry structure by investing in non-petroleum industries. The Government has, therefore, decided to build a new town, including a dry dock, free zone, an airport and a seaport facility at the Al Wusta region and expects that the population in the region would increase up to 100,000 by 2020. The ship repair yard, one of the biggest ship repair yards in the world, is equipped to handle some of the largest vessels in service today, including Ultra-Large Crude Carriers (ULCCs) of up to 600,000 deadweight ton (DWT) capacity. The Duqm dry dock will provide direct employment to around 1,500 people, and the workforce is projected to rise to over 3,000 by 2020. Thousands of indirect jobs would also be created.

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