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Takamul and Oman Oil to add value on petrochemicals

Oman prepare series of projects for PTA,PET and PIA

The national oil company Oman Oil Company (OOC) and its 92% subsidiary Takamul Investment Company (Takamul) presented a program of new projects covering the petrochemicals, metals and mining sectors.

OOC, as a wholly-owned company by the Government of the Sultanate of Oman is investing in the exploration and production of the local oil and gas resources but is also mandated to contribute to the economical and social development of the country.

On the upstream side OOC partners with foreign companies such as Shell or BP under the classical for joint venture or production sharing contracts.

For the downstream activities, OOC established Takamul in 2006 to promote and facilitate investments in new projects to benefit from the competitive supply of the local upstream sector.

The Sultanate of Oman sees in the downstream chain the major component of its progressive strategy for the future in providing a balanced benefit between the foreign investors and the locals.

In this context, Takamul is to lead this shift in favor of the downstream heavy industry such as petrochemicals.

Some large projects had been already announced in Oman:

 – Duqm refinery for $6 billion capital expenditure

 – Sohar refinery expansion for 1.5 billion capital expenditure

 – Salalah Ethylen Dichloride for $500 million

In addition to these investments, Takamul is working on a list of petrochemical greenfield projects in the magnitude of $500 – $1 billion capital expenditure, some involving OOC and foreign companies.

Oman plans high added value derivatives in Sohar 

On the top of this list Takamul points out a purified terephtalic acid (PTA) and Polyethylene Terephtalate (PET) plant.

To be located in Sohar, Oman, this PTA/PET facility should receive its feedstock from the Sohar refinery.

With $800 million capital expenditure, this new PTA/PET plant should have a capacity of 1 million t/y.

Through Takamul, OOC is working to create the joint venture to lead this PTA/PET project.

If to be aligned on the Sohar refinery expansion, this project be developed on fast track in 2013.

In following this PTA/PET project, Takamul is proposing a metaxylene/PTA project, also in Sohar.

Metaxylene is part of these critical intermediates to produce the high added value petrochemical products interesting Oman.

Metaxylene is the feedstock for the production of purified isophthalic acid (PIA), used for high performance unsaturated polyesters and PET resins.

As metaxylene and PIA are intermediates to be combined primarily with actual hydrocarbons products manufactured by the ORPIC refinery and aromatic units, ORPIC should be involved in these projects.

Furthermore, Takamul is considering a:

 – Polyolefins plant in Sohar to come downstream the ORPIC’s polypropylene project

 – Derivatives plant downstream the Salalah methanol project

 – OOC LPG derivatives facility

In addition Takamul intends to integrate additional functions to support this industrial development in providing utilities, centralized maintenance services, facilities management services. 

With Takamul, the national oil company Oman Oil Company is not only developing an integrated upstreamdownstream business model with all the refining and petrochemical projects in perspective, but also setting the foundations for building up a local expertise around the oil and gas and petrochemical sector.  

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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