Compañía Logística de Hidrocarburos CLH, S.A. has signed an agreement with the Omani company Oman Oil Refineries and Petroleum Industries Company (ORPIC) for creating a joint venture that will invest 200 million dollars in the construction and operation of new logistics infrastructures in Oman.

During the contract signing ceremony, which was held today in Muscat, the Chairman of CLH, José Luis López de Silanes, emphasized that "this operation is the first international investment made by the company in its history of more than 85 years and is the result of the company's interest in fostering the internationalisation of its activities, and the prospects for growth of the oil sector in Oman, where CLH has an important reference shareholder to guarantee the success of this project".

Musab Al Mahruqi, the CEO of Orpic, said that “this is a significant project on a number of levels. As a multiproduct pipeline it is a first for Oman, a complex transportation system that will have both business and environmental impact. The Jifnain terminal is a national strategic storage facility, capable of responding to emergency situations should it be necessary. And the direct link to the new airport will mean that aircraft will be refueled through a closed system, rather than having to use fuel tankers. We strongly believe that this project is important for Oman and Orpic”.

The new company, in which CLH and ORPIC will hold a 40% and 60% stake, respectively, will be called Orpic Logistics Company (OLC) and it will be responsible for the construction and management of a storage plant in the vicinity of Muscat, the capital of Oman, and a multi-product pipeline network that will connect the new storage plant to the two refineries existing in the country and with Muscat
International Airport.

The new pipeline network will have a total length of 290 kilometres and will make it possible for more than 5.4 million cubic metres to be transported. It will also be reversible, meaning that a highly flexible logistics system will be provided. The development and start-up of the infrastructures will be gradual. The first section of this pipeline network will consist of building the connection between the refinery in Muscat and the international airport, and is expected to become operational during the first half of 2016.
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On the other hand, the new storage plant will have an operating capacity of more than 170,000 cubic metres and will be fitted with 18 loading racks for expediting supply to the various distribution companies operating in Oman, and is expected to become operational in the first half of 2017, as is the pipeline for connection with the Sohar refinery.

The building of these new infrastructures, in which CLH's broad experience in managing these types of logistics systems will be applied, will bring significant benefits to Oman, as it will permit increased security of oil product supplies and will reduce the use of tank trucks for transporting fuels by road. Besides this, it will mean that the costs of oil product transportation and distribution in the country can be optimised.

For CLH, the development of this project represents an important first step in the internationalisation process forecast in the Strategic Plan 2012-2016, the aim being to achieve greater diversification of its activities and to develop new business opportunities.

About CLH

Compañía Logística de Hidrocarburos CLH is the leading company in the Spanish market for the transportation and storage of oil products, with a pipeline network more than 4,000 kilometres long, and 39 storage facilities, with a total capacity of 7.9 million cubic metres, in addition to 28 airport facilities.

About ORPIC

ORPIC (Oman Oil Refineries and Petroleum Industries Company) is one of the leading companies in Oman and has two refineries in that country, in Sohar and Muscat. ORPIC is owned by the Government of the Sultanate of Oman and Oman Oil Company SAOC, the trading company created by the Government of the Sultanate of Oman for managing investments in the energy sector. This latter company has also been a CLH shareholder since 2003 and holds a 10% stake in the capital.