Sembcorp builds power plant for Oman economic zone
Sembcorp and Oman Oil to set up utility provider for Duqm.
Sembcorp Industries subsidiary, Sembcorp Utilities (Oman), has signed a joint venture agreement with Takamul Investment, a subsidiary of Oman Oil, to develop centralised utilities facilities for the Duqm Special Economic Zone (SEZ).
Under the agreement, Takamul and Sembcorp’s 65-35 joint venture entity, Centralised Utilities Company (CUC), will provide a range of utility services to multiple industrial customers in the Duqm SEZ in southern Oman.
CUC’s customers will include anchor customer Oman Oil Company, which is developing a 230,000 barrels per day refinery targeted to begin operations in 2018, as well as a petrochemical complex on the site. CUC will have an initial share capital of OMR1 million (approximately S$3.2 million), of which Sembcorp’s 35% stake will be funded through internal resources.
Singapore-listed Sembcorp also operates the Salalah Independent Water and Power Plant, which opened recently, and the Fujairah 1 Independent Water and Power Plant in the UAE.
“We are very honoured to be selected by Takamul as their centralised utilities partner for this important new SEZ at Duqm. As the pioneer in one-stop outsourced energy, water and on-site logistics for multiple companies in energy-intensive industrial hubs, Sembcorp is in a good position to support the growth of the Duqm SEZ. We look forward to working closely with Takamul in making CUC a success. We also look forward to growing Sembcorp’s business in Oman as well as the Middle East, a target region for future growth for our Group,” Tang Kin Fei, Sembcorp’s Group President & CEO.
Strategically located along the Gulf of Oman with a long coastline running along the Arabian Sea, Duqm has been targeted for development as a major maritime gateway for trade in crude oil from the Gulf, and as an important industrial and commercial hub.