Oman: Agreement signed to off-take refined petroleum products
Oman Oil Company S.A.O.C. (OOC) and Vitol Group (Vitol) signed an agreement Sunday with Oman Refinery Company, LLC (ORC). The new deal sets forth the key terms pursuant to which OOC and Vitol will off-take Omani refined petroleum products from the Sohar Refinery starting mid 2006.
The agreement was signed at a ceremony held at OOC's offices by Maqbool bin Ali Sultan, Minister of Commerce and Industry and Chairman of Oman Oil Company, Nasser bin Khamis al-Jashmi, Under Secretary of the Ministry of Oil and Gas and Chairman of ORC, and Ian Taylor, President and Chief Executive of Vitol Group.
According to ONA, Maqbool Ali Sultan said: "The signing of the five-year term Off-Take Heads of Agreement illustrates the commitment to capitalize on the opportunities and synergies between Omani and international companies that will further support the Government's efforts in diversifying the Omani economy." "Oman Refinery Company is proud to have concluded this agreement with OOC and Vitol, and looks forward to further enhancing cooperation between the companies," added Nasser al-Jashmi, Chairman of Oman Refinery Company.
The agreement marks the achievement of a major milestone in OOC's and Vitol's joint effort to establish a trading company that will trade crude oil and related products in the international marketplace. The trading company, majority of which is owned OOC, plans to commence trading activities in the beginning of 2006.
Oman Oil Company S.A.O.C. (OOC) is a commercial company 100 percent owned by the Government of the Sultanate of Oman. The company was founded in 1992 to give the Government another vehicle for pursuing investment opportunities in the energy sector both inside and outside Oman.