Oman Oil in talks to buy 40% stake in Lubechem

Oman Oil Marketing Company (OOMC), based in Muscat, Oman, said that it is negotiating with shareholders of Lubechem International Industry LLC, to acquire a 40% stake in Lubechem for approximately DH1.5 million (US$408,283).
Based in the United Arab Emirates, Lubechem is a manufacturer of automotive, industrial and marine lubricants with an annual turnover of US$20 million. The company exports products to 30 countries, including Southeast Asia, Middle East and Africa. It is also engaged in the trading of base oils and additives.
Oman Oil also announced recently its plans to set up a large distribution terminal and start a bunkering business at the Port of Duqm.
“We are in the process of negotiations to acquire a footprint in Duqm by establishing a terminal and bunkering services. We hope to conclude negotiations in 2014,” said Omar Ahmed Salim Qatan, OOMC CEO.
OOMC was launched in October 2003, along with its new brand identity, when Oman Oil Company acquired shares of what was formally known as BP Oman in December 2003. Today, it is the only 100% Omani-owned fuels marketing company, 49% of which is owned by Oman Oil Company. Its lubricants business markets the BP and Castrol brands of lubricants throughout the sultanate.
This acquisition is expected to enhance the ability of Oman Oil in its lubricants vertical supply chain integration process, the company said in a statement.
The transaction is to be concluded within the next 30 days.