- Project extends the reach of
Sembcorp's pioneering centralised utilities business and strengthens its
presence in the Middle East
Muscat, OMAN, May 19, 2013 - Sembcorp Industries
(Sembcorp) is pleased to announce that its newly-incorporated
wholly-owned subsidiary, Sembcorp Utilities (Oman), has signed a joint
venture agreement with Takamul Investment Company (Takamul), a
subsidiary of Oman Oil Company, to develop centralised utilities
facilities for the 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 agreement, 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. CUC
will have an initial share capital of OMR1 million (approximately S$3.2
million), of which Sembcorp’s 35% stake will be funded through internal
resources.
Sembcorp and Takamul intend to invest in separate
special purpose companies which will develop and own facilities
supplying CUC with energy, water and other on-site logistics. Operations
and maintenance of the facilities will be undertaken by CUC. Sembcorp
and Takamul are currently working on the terms and details of the
special purpose companies.
This concept of a centralised utilities model will be the first in
Oman. This project builds on Sembcorp’s considerable expertise and
operating experience in this field. The company is a pioneer in
centralised utilities. 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. They can also be assured of reliable
solutions which meet stringent environmental standards. From its
beginnings in Singapore’s petrochemical hub, Jurong Island, this model
has been successfully replicated in key industrial sites
internationally. 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.
The signing of the joint venture agreement took
place in Muscat today between His Excellency Nasser bin Khamis Al
Jashmi, Chairman of Oman Oil Company, and Tang Kin Fei, Sembcorp’s Group
President & CEO. The ceremony was witnessed by Singapore’s Minister
for Foreign Affairs and Minister for Law, K Shanmugam.
Mr Tang said, “We are very honoured to be selected
by Takamul as their centralised utilities partner for this important
new SEZ at Duqm. As the pioneer in one-stop outsourced energy, water and
on-site logistics for multiple companies in energy-intensive industrial
hubs, Sembcorp is in a good position to support the growth of the Duqm
SEZ. 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.”
His Excellency Nasser bin Khamis Al Jashmi said,
“This is a significant step in a very positive direction. The CUC will
contribute to His Majesty’s vision of developing Duqm as a major
national and international hub supporting the economic development of
Oman. We are happy that Takamul and Sembcorp have joined forces and
together we are confident of a very successful outcome.”
“Sembcorp was selected through a very extensive
evaluation process of a number of utilities providers, because of their
considerable expertise and operating experience in this field,” Nabil
Al-Ghassani, CEO of Takamul, added.
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 square kilometres and an 80-kilometre coastline, the Duqm
SEZ will rank as the largest SEZ in the Middle East and North Africa
region and one of the largest in the world. It will be administered,
regulated and developed by the Duqm Special Economic Zone Authority, a
financially and administratively independent government entity.
Encompassing a sea port, city centre, industrial zone, tourism zone,
logistics centre and an education and training zone, all supported by a
multimodal transport system connecting the SEZ to nearby regions, the
development of the SEZ is expected to take place in three phases from
now until 2025.
Sembcorp’s presence in Duqm will mark its second
project in Oman. Earlier today, Sembcorp celebrated the official opening
of its first operation in Oman, the Salalah Independent Water and Power
Plant. The largest and most efficient plant of its kind in the Dhofar
governorate, the plant plays a major role in meeting the region’s
growing power and water needs. It supplies 445 megawatts of power and 15
million imperial gallons (69,000 cubic metres) per day of desalinated
water to the Government of Oman’s wholly-owned Oman Power and Water
Procurement Company under a 15-year power and water purchase agreement.
The signing of the joint venture agreement with
Takamul is not expected to have a material impact on the earnings per
share and net asset value per share of Sembcorp Industries for the
current financial year.
No comments:
Post a Comment