The export-import Bank of Korea (Korea Eximbank) announced on February 2 that the bank will provide US$370 million (447.33 billion won) to finance a Liwa petrochemical project in Oman, awarded to GS Engineering & Construction.
This project financing (PF) offer is much more stable than other PF projects in Middle East in the past in terms of the project structure and financial conditions.
An official from Korea Eximbank said, “As low oil prices have continued, many large projects have been cancelled all over the world and Korean companies have been facing difficulties to win orders. However, Korean company was able to receive the order after the bank led the financial negotiation based on its overseas network and PF expertise. The successful financing for the project will greatly contribute to securing the driving force of following projects and helping Korean companies win orders.
The Liwa petrochemical project is Oman’s national project that takes US$6.3 billion (7.62 trillion won). It is to construct the nation’s first petrochemical plant using natural gas.
Meanwhile, this is the second time that the bank is providing large-scale financing to refinery and petrochemical projects led by the Omani government and won by Korean firms.
Previously, Korea Eximbank provided US$500 million (604.5 billion won) for the aromatic hydrocarbons plant construction project awarded by Oman Oil Company to LG International Corp. in 2006, and US$600 million (725.4 billion won) for the oil-refinery expansion project in Sohar, Oman, awarded to Daelim in 2014.