OXEA acquisition to spur chemicals industry growth

By Conrad Prabhu — MUSCAT — Oman Oil Company’s (OOC) recent acquisition of OXEA, the world’s largest supplier of oxo chemical products, has the potential to spawn the growth of a major downstream chemicals industry in the Sultanate, its downstream investment arm, Takamul, has stressed. According to a senior company executive, OOC’s buyout of the global chemicals brand at an estimated cost of $2.4 billion last month, is in line with Takamul’s primary goal of promoting value-added projects that feed off upstream industries. Germany-headquartered OXEA ranks among the largest supplier of oxo chemicals — intermediate commodities used in the manufacturer of an extensive of products of everyday use.

Operating from a string of plants in the Americas, Europe and Asia, the chemicals giant produces around 70 different types of oxo chemicals, such as aldehydes, oxo-alcohols, oxo-derivatives, carboxylic acids, polyols, esters, and amines.

These constitute primary ingredients in the manufacturer of, among other things, paints and coatings, adhesives, flavours and fragrances, cosmetics, lubricants, pharmaceuticals and plastics. Takamul says the acquisition has the potential to open up new synergies with its own strategy to develop a downstream petrochemicals cluster in the Special Economic Zone (SEZ) at Duqm, among other locations in the Sultanate. “We think this acquisition will give us the technology and market, while we will bridge that with known (downstream) opportunities in Oman,” said Jalal al Lawati, Assistant Manager — Corporate Communications, Takamul Investment Company. “We believe we can create a lot of opportunities in Oman, such as downstream olefins, may be oxo chemicals, and other chemical products too,” he stated.

At a recent energy forum held in the city, Takamul unveiled ambitious plans for investments in downstream petrochemicals, metals and minerals potentially estimated in the hundreds of millions of Omani rials. On the anvil are projects linked to the production of metaxylene / purified isophthalic acid, downstream olefins, LPG derivatives, downstream methanol, downstream ammonia, industrial gases in Duqm, and a Plastics Park in collaboration with refining and petrochemicals flagship Orpic. Takamul is almost 95 per cent owned by Oman Oil, while the balance is held by the Government of Abu Dhabi through ADWEA and Al Maha Strategic Industries for Investments.

(OEPPA Business Development Dept)