Compania & Oman's ORPIC form $200mn JV company

Firm will build and operate new logistics infrastructures in Oman

NEWS, Projects, Compa, Omani company Oman Oil Refineries and Petroleum In

Compañía Logística de Hidrocarburos CLH, S.A. has signed a joint venture deal with the Omani company Oman Oil Refineries and Petroleum Industries Company (ORPIC) to invest $200mn in the construction and operation of new logistics infrastructures in Oman.

CLH chairman, José Luis López de Silanes, said the operation marked the Spanish firm's first foreign investment in its 85-year history

He said: " This is the result of the company's interest in fostering the internationalisation of its activities, and the prospects for growth of the oil sector in Oman, where CLH has an important reference shareholder to guarantee the success of this project."

Musab Al Mahruqi, the CEO of Orpic, said: “This is a significant project on a number of levels. As a multiproduct pipeline it is a first for Oman, a complex transportation system that will have both business and environmental impact. The Jifnain terminal is a national strategic storage facility, capable of responding to emergency situations should it be necessary. And the direct link to the new airport will mean that aircraft will be refueled through a closed system, rather than having to use fuel tankers. We strongly believe that this project is important for Oman and Orpic."

CLH and ORPIC will hold a 40% and 60% stake, respectively, in the new company. It will be called Orpic Logistics Company (OLC) .

OCL will be responsible for the construction and management of a storage plant in Muscat, and a multi-product pipeline network that will connect the new storage plant to the two refineries existing in the country and with Muscat International Airport. Last month the airport  awarded a deal to Galfar to build a new catering facility. 

The new pipeline network will have a total length of 290km and will make it possible for more than 5.4mn m3 to be transported. It will also be reversible, meaning that a highly flexible logistics system will be provided. The development and start-up of the infrastructures will be gradual.

The first section of this pipeline network will consist of building the connection between the refinery in Muscat and the international airport, and is expected to become operational during the first half of 2016.


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