Oman receives FDI approval for refining project
CBH Inc. official source announced that the company will invest in the Sultanate of Oman in the construction of a Low Sulfur Fuel Oil Refinery. The LSFO refinery aims to serve the growing shipping needs for IMO complaint cleaner fuel for shipping propulsion.
The planned capacity is 300,000 bpd in phases.
The location of the refinery is open to the Arabian sea outside the Straight of Hurmoz. The natural depth of the port area qualifies it to receive large ships with deep keel.
The refining process is based on a unique Canadian technology with proven results in turning poor quality fuel into cleaner and higher grades.
The CBH official said: “CBH Inc. are delighted to cooperate with the Government of Oman to invest in the LSFO refinery. Oman is one of the best located on the world map for such investment. We have great confidence that our decision is a strategically sound one”. He added: “The people of Oman are highly educated, young, and hard working. The country is resourceful and safe”. Oman also enjoys high political and economic stability for almost fifty years.
The project satisfies the strict investment criterion of CBH based on focused investment strategy, with safe, secure, and high returns. Such refinery is a niche investment that considers the challenges facing the oil and gas industry and focus mainly on market demand. Such demand is led by international law and the viability of the global logistics business.
The total investment is $1.5 billion. The expected ROI is 22% per year. The structured investment is based on a global fund based in London, UK and open to interested investors.
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