MUSCAT, NOV 19
The upcoming IPO of OQ Base Industries (OQBI) marks a significant milestone for Oman’s capital market, offering investors a stake in one of the nation’s most vital industrial enterprises.
As a leading integrated facility specialising in methanol, ammonia, and liquefied petroleum gas (LPG) products, OQBI reflects the Sultanate’s strategic focus on maximising the value of its natural resources.
Situated in the Salalah Free Zone, OQBI is among the world’s largest integrated facilities operating from a single location. The company enjoys a prime geographical position in southern Oman, taking advantage of Salalah’s infrastructure and tax-free incentives. This enables OQBI to operate three state-of-the-art plants: a methanol plant with an annual capacity of 1.095 million tonnes (commissioned in 2010), an ammonia plant with a 365,000-tonne annual capacity (operational since 2022), and an LPG plant capable of producing 356,000 tonnes per year (operational since 2021).
The integrated design of these facilities ensures a seamless supply of raw materials via pipelines managed by OQ’s Integrated Gas Company (IGC), which is owned by Oman’s Ministry of Finance. This efficient operational setup positions OQBI as a significant player in global markets while reinforcing its importance as a government-owned enterprise critical to Oman’s energy diversification strategy.
OQBI’s production is primarily aimed at international markets, with 100% of its methanol output and 87% of its LPG products exported through OQ Trading, the global trading arm of OQ Group. This focus on exports not only brings substantial revenue to Oman but also bolsters the country’s reputation as a reliable supplier of high-quality petrochemical products.
However, the company’s ambitions extend beyond profitability. With sustainability at its core, OQBI prioritises Environmental, Social, and Governance (ESG) principles. From implementing energy-efficient decarbonisation initiatives to supporting local economic growth, OQBI exemplifies a forward-thinking approach to business. Its workforce of 411 employees (as of mid-2024) plays a vital role in driving these ambitions, with skilled professionals contributing to its operational excellence.
As Oman continues to position itself as a hub for energy and petrochemical exports, companies like OQBI are crucial to the country’s economic ambitions. The balance between market expansion and maintaining investor confidence will be pivotal, ensuring that IPOs contribute not just to the growth of individual companies but also to the long-term vibrancy of Oman’s financial markets.
Oman Observer is now on the WhatsApp channel. Click here
