Continued high crude oil prices and the increased level of exploration and oil well servicing across the Gulf led to an increase in the demand for acid last year, according to Oman Chlorine board chairman Suleiman Bin Mohammed Bin Hamad Al Yahyai.

Compared to 2004, net profits last year for the largest chemical company in Oman increased by 57 per cent to RO931,413 ($2.371 million) which is a company record. This contributed to a two-fold increase in Oman Chlorine’s pre-tax profitability of RO1.235 million compared with RO664,883 in 2004.
“There is no doubt that the high quality of our products and our excellent safety standards have been instrumental in consolidating our commercial position,” Al Yahyai says. “We have earned the trust of the major international oilfield service companies, which represent our major client base.”
Al Yahyai says market improvements have continued this year leading to a record 96 per cent operation of the installed capacity. The average selling price has increased by 27 per cent, which continues to have a positive impact on revenues and profitability.
“Exports have increased throughout the Gulf, as well as to emerging markets in the Subcontinent and Far East,” he adds.
Al Yahyai says the company’s recently commissioned power plant has significantly reduced the cost of electricity, which is the major input in the cost of production, and will have an even greater impact on this year’s net profits.
“We have reached an agreement with Sohar Industrial Port to import major raw materials,” he adds. This could not be done in the past since the port was not ready yet to receive bulk cargo and adequate storage yards was not available.
Oman Chlorine continues to apply all standards of quality, safety and preservation of the environment by continuously improving its internal procedures and carrying out regular plant safety drills. The company maintains a clean record due to strict implementation of procedures in transport and production, and continuously implements all ISO 9001 quality standards.
Al Yahyai forecasts the stability and increased level of activities in the international and local oil markets will support the demand for the company’s products and its financial position.
He reveals that Oman Chlorine is conducting a feasibility study for setting up a calcium chloride production unit in collaboration with international companies specialised in this field, and that the company will soon release its findings.
Oman Chlorine, which was commissioned in September 2000, is completely automated. It was built by Akzo-Nobel of Sweden under the supervision of Germanischer-Lloyd’s of Germany.
Al Yahyai says the chemical plant is committed to its Omanisation programme, and that Omanis represent 40 per cent of its workforce.