(MENAFN - Qatar News Agency) Oman Oil Company and South Korean Company LG today signed a USD 850 million agreement to establish a joint venture to set up a petrochemical complex at Sohar Industrial Port area.
The complex is expected to go on stream by the end of year 2016.
Under the partnership agreement Oman Oil Company owns 70% of 's shares while LG will own the remaining shares.. The agreement includes the building of a petrochemical plant in Sohar Industrial Port area in accordance with the highest international standards and specifications for the production of one million and 100 thousand tonnes of pure acid annually and 500 thousand tonnes of Polyethylene terephthalate in two stages.
Undersecretary of the Ministry of Oil and Gas and Chairman of Oman Oil Company Nasser bin Khamis Al-Jashmi said the plant will be one of the important projects in the Sultanate and will contribute to the development and diversification of income sources, development of manufacturing industries in addition to creating job opportunities and training for Omanis.
For his part, Kent Lee Senior Vice President CEO of LG expressed pleasure for signing of the agreement saying that this project emphasizes the importance of joint cooperation between the two countries in the economic and investment sectors.
He hoped complex will be operational by 2016.