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31 May 2023

Daewoo and Oman discuss $20bn deal

By Agencies

Oman's government and Daewoo Shipbuilding and Marine Engineering Construction Co are aiming to sign a $20 billion (Dh73.4bn) deal to build a town in the Gulf state by mid-April, a source close to the plan said on Tuesday.


An official at the firm, the construction arm of South Korea's Daweoo Shipbuilding and Marine Engineering told Reuters in February a contract was expected to be signed by the end of March.


The two sides had still to agree on "certain contractual issues", the source with direct knowledge of the project told Reuters, declining to give more details.


The plan envisages the construction of the town to be completed by 2020, Daewoo said in February. Investment funds for the project will be equally split between Daewoo and the Omani finance ministry.


The project will be located near Duqm between the capital Muscat and Salalah in the south.


It entails building an airport, a seaport, a refinery and a township with associated infrastructure, the source said.


Daewoo is already building a ship repair yard and a dry dock complex at the existing port in Duqm.


Finance ministry officials could not be immediately reached for comment. (Reuters)