Muscat – Oman’s global integrated energy company OQ Group, represented by its subsidiary OQ Refineries and Petrochemical Industries, has acquired Spanish firm Exolum Corporation’s 40 per cent shareholding in OQ Logistics.
Through this acquisition, OQ Refineries and Petrochemical Industries now holds 100 per cent shareholding in OQ Logistics, according to a press statement issued by OQ Group.
The logistics sector in Oman is one of the most promising sectors that contributes to diversifying the national economy. The acquisition of Exolum’s stake in OQ Logistics is part of OQ Group’s strategy to integrate the logistics infrastructure that would support growth and bankability of the logistics portfolio with a clearer and predictable commercial and regulatory framework.
OQ Refineries and Petroleum Industries (formerly Orpic) established OQ Logistics in 2014, in partnership with Exolum (formerly Logistica De Hidrocarburos Compania) which owned 40 per cent stake. OQ Logistics was formed to build and operate a pipeline to transport multiple oil products in both directions linking the two OQ refineries in Muscat and Sohar and linking them to a major storage facility in Al Jifnain area.
OQ Logistics owns Al Jifnain terminals in Muscat governorate, which is the largest terminal for storing and distributing refined petroleum products in Oman, with a storage capacity of 170,000 cubic meters of oil derivatives, along with pipelines connecting Muscat-Sohar, Mina Al Fahal to Jifnain and Jifnain to Muscat Airport to transport refined petroleum fuel products.
Hilal al Kharusi, chief executive – commercial and downstream at OQ, said, “We would like to take this opportunity to thank our partner Exolum on their contribution in jointly developing OQ Logistics and we are confident of Exolum’s future growth and prospects. OQ intends to integrate its portfolio of refined petroleum business while also developing a strategic fuel reserve on behalf of the government to ensure continuous and sustainable delivery to the customers.”
“With this acquisition, OQ now works to meet its strategic objective to consolidate and integrate OQ Logistics with other OQ logistics assets, creating a larger platform for logistics infrastructure business in Oman followed by establishing a contractual and commercial framework to then monetize the consolidated entity through an initial public offering (IPO). This would create an opportunity for a logistic infrastructure asset in Oman to list on the Muscat Stock Exchange (MSX),” he said.
Jorge Lanza, chief executive officer of Exolum, said,” It has been an honour for Exolum to participate in this project, which was also our first foray into international markets. This joint venture with OQ opened the door to new business opportunities outside Spain and, partly thanks to it, Exolum is now present in the UK, Netherlands, Germany, Ireland, Panama, Ecuador and Peru.”
“From the outset, we were confident that this project would be innovative, contributing significantly to the country’s prosperity, and that it would bring significant improvements to the petroleum products industry thanks to the experience and extensive track record of our almost 100 year old company,” he added.
Exolum is Europe’s leading logistics company for liquid products and one of the largest in the world. Its core business is the transport and storage of a wide range of bulk liquid products, particularly refined and chemical products and biofuels, in a sustainable and efficient manner.