South Korea's LG International Corp. is to form a US$1 billion joint venture in Oman with two oil firms from the Gulf state to produce and sell petrochemical products. Holdings in the Aromatics Oman LLC venture will be as follows: State-run Oman Oil Company will hold 60% stake, Oman Refinery Company (ORC) and the Korean LG Intl will hold 20% each. With this venture, LG International will advance into PX and benzene markets which have bright outlooks, and strengthen its position as South Korea's feedstock supplierInitial capital of US$300 million would be allocated according to the proportion of ownership, with US$700 million to be raised via project financing. The venture, expected to come onstream in Q3-2008, is expected to have an annual capacity to produce 800,000 tons of paraxylene (PX) and 200,000 tons of benzene, worth US$750 million in total sales a year.
19-Jul-05 
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