RenewableEnergyResources in Oman In 2005, Sohar Aluminium Company signed an engineering, procurement and construction contract with Bechtel Corporation of the US for its USD 2.2bn project to build an aluminium smelter. It will have an initial capacity of 325,000 MT/y and is expected to begin commercial production in 2008. OOC and the Abu Dhabi Water and Electricity Authority each hold a 40% stake in Sohar Aluminium Company, with Alcan Corporation of Canada holding the remaining 20%. Implementation also continues in Sohar of, among other projects, a USD 320m polypropylene plant and a USD 400m methanol plant. In 2007 a USD 650m fertiliser plant run by Sohar International Urea and Chemicals Industries is scheduled to start producing 3,500 MT/d of urea and 2,000 MT/d of ammonia. In the same year, the first USD 350m phase should be completed on the Shadeed Iron and Steel plant, owned by a UAE-based company, Al Ghaith Holdings, which should have an output of 720,000 MT/y of steel alloys and iron. Finally, in mid-2008, the Liwa Petrochemical Company’s new USD 300m plant should begin producing 300,000 MT/y of ethylene dichloride and 240,000 MT/y of caustic soda. Liwa Petrochemical is a joint venture between OOC, LG International of South Korea and the Iranian National Petrochemical Company. LG International also has a 20% stake in Aromatics Oman (with OOC holding 60% and the Oman Refinery Company the remaining 20%), which in 2005 announced plans for a USD 1.1bn aromatics complex at Sohar, to produce 800,000 MT/y of paraxylene and 210,000 MT/y of benzene. Away from Sohar, a methanol plant is also planned for the free-trade zone in Salalah, while other gas-based industries are being located at Oman’s second emerging industrial city, Sur site of the country’s LNG facilities. In 2005 the Oman India Fertiliser Company (Omifco) completed its new USD 1bn plant in Sur and began production and export. Omifco is a joint venture between OOC (50%) and two Indian companies, Krishak Bharati Co-operative Limited (25%) and Indian Farmers Fertiliser Co-operative (Iffco, 25%). The Indian government has agreed to purchase the plant’s 5,060 MT/d urea output, and the Indian Agriculture Fertilisers Company will buy the 3,500 MT/d of ammonia. 3.2.4 Oil refining The Oman Refinery Company (ORC) was established in 1982 with the aim of serving the local market. The refinery, which is in Muscat, currently has a processing capacity of more than 106,000 b/d (late 2006). The refinery’s product mix includes petrol, kerosene, gas oil and butane. In addition to running the existing Muscat facility, ORC is overseeing the construction of the new USD 1.3bn refinery in Sohar, which was completed in 2006/7. The project is being financed through government equity and a syndicated loan. When operational, the new refinery will produce gasoline, propylene, liquefied petroleum gas, naphtha, fuel oil, kerosene, and gas oil. Page 34 of 134 .
RenewableEnergyResources in Oman 3.2.5 Economic Sectors’ Contribution to GDP Mining & Quarrying: The contribution of this sector was very insignificant in 1980 with a share of just RO one million. However, by 1990, the sector’s contribution to GDP reached RO 12 million, constituting 0.26%. In 2001, the figure rose to RO 17.8 million. In 2005, the Mining & Quarrying sector’s share in the GDP reached 0.2%. Agriculture & Fisheries: The fact that around 40% of the national manpower is engaged in agriculture and fisheries sectors make them the most promising sectors for diversifying the manufacturing base and raising people's income and living standards. This sector’s contribution is still low with rates ranging from 2.6% to 2.7% during the last two decades, despite the fact that the prices at current rates were steadily shooting up, starting with RO 116.2 million in 1990 to RO 154.6 million RO in 2001. In 2005, the Agriculture & Fisheries sector’s share in the GDP reached 1.4%. Converting Industries (manufacturing): In the year 1990, around 3% of the GDP came from this important sector with a share of around RO 131.7 million. The rate increased to 5.7% with a value of RO 640.2 million by the year 2001. In 2005, the Converting Industries sector’s share in the GDP reached 8.3%. Electricity & Water: This sector did achieve a growth in its share in GDP during the period from 1991 to 2001. The contribution steadily grew from 0.9% in 1991 (RO 39.3m ) to 1.6% in 2001 (RO 79.7m). In 2005, the Electricity & Water sector’s share in the GDP reached 1.2%. Building & Construction: This is a vital sector that plays a significant role in Oman’s developments. This sector’s share in GDP in 1991 was around 2.9%. However, by 2001 it dropped to 2.8%. In 2005, the Building & Construction sector’s share in the GDP is only 2.5%. Oil & Gas Sectors: Crude oil is still the major source of Oman’s economy. Its share along with natural gas stands at around 78.4% of the Government’s gross revenue. However, its share GDP rose from 41.9% in 1991 to 42.6% in 2001. In 2005, the Oil & Gas sector’s share in the GDP reached 48.8% (Oil 45.2%; Gas 3.6%). This shows a continued rise in the contributions of oil sectors to GDP. Services Activities & Foreign Trade: The Sultanate enjoys full freedom of import from and export to the international markets and the degree of openness of the Omani economy reflects the philosophy of the country’s economic policy and the extent of its relations with the outer world. This also underscores the Sultanate’s decision to join the World Trade Organisation (WTO). In 2005, the Services Activities & Foreign Trade sector’s share in the GDP reached 39.0%. Page 35 of 134 .