OQ acquires Exolum’s stake in OQ Logistics Company

MUSCAT: The logistics sector in the Sultanate of Oman is one of the most promising sectors that contributes to diversifying the national economy. In accordance with the strategy of OQ in integrating the logistics infrastructure that would support the growth and bankability of the logistics portfolio with a clearer and predictable commercial and regulatory framework, the OQ Group represented by OQ Refineries and petrochemical Industries LLC acquired Exolum Corporation SA’s, a Spanish Company (formerly Logistica De Hidrocarburos Compania CLH) 40 per cent shareholding in OQ Logistics LLC. Through this acquisition, OQ Refineries and petrochemical Industries LLC now holds 100 per cent shareholding in OQ Logistics LLC.

OQ Refineries and Petroleum industries LLC (formerly Orpic) signed an agreement to establish OQ Logistics LLC in 2014, in partnership with the Spanish Company Logistica De Hidrocarburos CLH holding a 40 per cent stake to build and operate a pipeline to transport multiple oil products in both directions linking the two OQ refineries in Muscat and Suhar other and linking them to a major storage facility in Al Jifnain area.

OQ Logistics LLC owns Al Jifnain terminals in the Governorate of Muscat, 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, MAF to Jifnain and Jifnain to Muscat Airport to transport refined petroleum fuel products.

Hilal al Kharusi (Chief Executive Commercial & Downstream) commented, “We would like to take this opportunity to thank our partner Exolum on their contribution in jointly developing OQ Logistics LLC 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 LLC 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 listing in Muscat Stock Exchange (MSX).”

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.”