Identifier
Created
Classification
Origin
07MUSCAT1141
2007-12-29 14:08:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Muscat
how-toVZCZCXYZ0004 RR RUEHWEB DE RUEHMS #1141 3631408 ZNR UUUUU ZZH R 291408Z DEC 07 FM AMEMBASSY MUSCAT TO RUEHC/SECSTATE WASHDC 9095 RUCPDOC/DEPT OF COMMERCE WASHDC
UNCLAS MUSCAT 001141
SIPDIS
SENSITIVE
SIPDIS
STATE FOR NEA/ARP, EEB/CBA
COMMERCE FOR ITA THOFFMAN
E.O. 12958: N/A
TAGS: ECON EINV MU
SUBJECT: DOW'S OMAN PROJECT IN DOUBT
REF: MUSCAT 802
UNCLAS MUSCAT 001141
SIPDIS
SENSITIVE
SIPDIS
STATE FOR NEA/ARP, EEB/CBA
COMMERCE FOR ITA THOFFMAN
E.O. 12958: N/A
TAGS: ECON EINV MU
SUBJECT: DOW'S OMAN PROJECT IN DOUBT
REF: MUSCAT 802
1. (U) This message contains sensitive business information.
Please handle accordingly.
2. (SBU) On December 27, the Ambassador met with Oman Oil
Company Chairman Maqbool bin Ali Sultan to discuss the status
of the company's proposed joint venture with Dow Chemicals on
the construction of a polyethylene plant in Sohar. Maqbool
expressed doubt that the project would move forward, citing
that the capital costs for constructing the plant had now
doubled to $8.2 billion. He also highlighted Dow's proposed
joint venture with Saudi Aramco on the construction of a
petrochemicals plant in Ras Tanura in Saudi Arabia and Dow's
proposed joint venture with Kuwait Petroleum Company in
forming a new petrochemicals company from several Dow
businesses as contributing factors to the demise of the Oman
project.
3. (SBU) Even with the apparent shelving of the Dow project,
Maqbool remarked that the shortage of natural gas remained a
complicating factor in promoting Oman's industrial
development. For this reason, he noted that his company had
stopped promoting any project that had to do with the
consumption of natural gas, though he remained hopeful that
the government's recent concession agreements with BP and BG
would eventually result in additional sources of gas. The
Chairman, who also serves as the Minister of Commerce and
Industry, added that the government remained in discussions
with Qatar and Iran on importing gas to the Sultanate.
GRAPPO
SIPDIS
SENSITIVE
SIPDIS
STATE FOR NEA/ARP, EEB/CBA
COMMERCE FOR ITA THOFFMAN
E.O. 12958: N/A
TAGS: ECON EINV MU
SUBJECT: DOW'S OMAN PROJECT IN DOUBT
REF: MUSCAT 802
1. (U) This message contains sensitive business information.
Please handle accordingly.
2. (SBU) On December 27, the Ambassador met with Oman Oil
Company Chairman Maqbool bin Ali Sultan to discuss the status
of the company's proposed joint venture with Dow Chemicals on
the construction of a polyethylene plant in Sohar. Maqbool
expressed doubt that the project would move forward, citing
that the capital costs for constructing the plant had now
doubled to $8.2 billion. He also highlighted Dow's proposed
joint venture with Saudi Aramco on the construction of a
petrochemicals plant in Ras Tanura in Saudi Arabia and Dow's
proposed joint venture with Kuwait Petroleum Company in
forming a new petrochemicals company from several Dow
businesses as contributing factors to the demise of the Oman
project.
3. (SBU) Even with the apparent shelving of the Dow project,
Maqbool remarked that the shortage of natural gas remained a
complicating factor in promoting Oman's industrial
development. For this reason, he noted that his company had
stopped promoting any project that had to do with the
consumption of natural gas, though he remained hopeful that
the government's recent concession agreements with BP and BG
would eventually result in additional sources of gas. The
Chairman, who also serves as the Minister of Commerce and
Industry, added that the government remained in discussions
with Qatar and Iran on importing gas to the Sultanate.
GRAPPO