Oman may be about to significantly increase VLSFO supply from the Middle East. File Image / Pixabay
Canadian private equity firm CBH plans to invest in building a very low sulfur fuel oil (VLSFO) production facility in Oman, the company said Tuesday.
The company plans to invest $1.5 billion with an expected return of 22% per annum, CBH said in an emailed statement.
Production capacity at the site is expected to be ramped up to 300,000 b/d in phases.
"The location of the refinery is open to the Arabian Sea, outside the Strait of Hormuz," the company said.
"The natural depth of the port area qualifies it to receive large ships with deep keel.
"The refining process is based on a unique Canadian technology with proven results in turning poor-quality fuel into cleaner an higher grades."