Sembcorp inks Oman utilities JV project
Muscat, May 20, 2013
Sembcorp Industries, a leading energy, water and marine group operating across six continents worldwide,has signed a JV agreement with Takamul Investment Company, a subsidiary of Oman Oil Company to develop centralised utilities units for Duqm Special Economic Zone (SEZ), a new major industrial and commercial hub that is set to be one of the world’s largest special economic zones.
Under the deal, Takamul and Sembcorp’s 65-35 joint venture entity, Centralised Utilities Company (CUC), will serve as a one-stop provider of a range of centralised utilities such as power, steam, water, sewerage treatment and on-site logistics on a captive basis 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.
The CUC will have an initial share capital of RO1 million ($2.59 million), of which Sembcorp’s 35 per cent stake will be funded through internal resources.
This concept of a centralised utilities model will be the first in Oman. The project builds on Sembcorp’s considerable expertise and operating experience in this field as it is a pioneer in centralised utilities, said Tang Kin Fei, Sembcorp’s Group president & CEO after signing the agreement with Nasser bin Khamis Al Jashmi, the chairman of Oman Oil Company in the presence of Singapore’s Minister for Foreign Affairs and Minister for Law K Shanmugam.
Under this unique model, multiple customers are offered an integrated supply of energy, water and on-site logistics produced by centralised facilities. By outsourcing critical utilities to Sembcorp, companies can focus on their core business and save on investment and operating costs, said the official.
"They can also be assured of reliable solutions which meet stringent environmental standards. From its beginnings in Singapore, this model has been successfully replicated in key industrial sites internationally," he noted.
“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," he added.
Al Jashmi described the JV agreement as a significant step in a very positive direction. "We are happy that Takamul and Sembcorp have joined forces and together we are confident of a very successful outcome.”
Takamul CEO Nabil Al-Ghassani said Sembcorp was selected through a very extensive evaluation process of a number of utilities providers, because of its considerable expertise and operating experience in this field.
Including Duqm, Sembcorp’s centralised utilities model has now been implemented in 10 sites across Singapore, the UK, China and the Middle East. The company also lends its expertise to develop local resources in markets where it operates through skills and knowledge transfer programmes, said a statement from the company.
Sembcorp’s presence in Duqm will mark its second project in Oman. The company yesterday celebrated the official opening of its first operation in Oman, the Salalah Independent Water and Power Plant.
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.
With a land area of 1,777 sq km and an 80-km coastline, the Duqm will rank as the largest SEZ in the Mena region and one of the largest in the world.-TradeArabia News Service
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