A club deal between Regional and Local Banks generated US$80 Million Credit Facilities for setting-up of a World class High pressure Carbon Steel Pipe and Casing complex in Sohar, the Sultanate of Oman.

The total investment in the GIPI Manufacturing facility is US$104 million and the company, aims to meet local demand and export from the very first year of Production in 2009. Engineering works for the Equipment and for the Plant are substantially completed and construction works set to commence within the next few weeks.

The GIPI credit facility was arranged by Gulf International Bank as a club deal between Qatar National Bank, Gulf International Bank, Bank Muscat and Bank Sohar. Gulf International Bank also acted as the structuring bank for the transaction. The signing ceremony was held on Sunday 11th of November 2007 at the Grand Hyatt Hotel in Muscat. . The Legal advisors for the transaction are Trowers and Hamlins for GIPI as the borrower and DentonWildeSapte for the lenders.

Addressing the function, the CEO of GIPI, Mr. Hamdan Al-Shaqsy appreciated the loan arrangement which marked a significant milestone for GIPI as it swiftly moves to the project execution phase. He stated that as a fast developing nation, the Sultanate of Oman will be able to manufacture and market high quality API grade pipes and casing. Mr. Al-Shaqsy, thanked the Government of the Sultanate of Oman under the wise leadership of His Majesty Sultan Qaboos for provision of excellent infrastructure and Government support for Industrial projects, stating that with this solid base, GIPI aims to provide the Oil and Gas sector in Oman with self sufficiency for carbon steel pipe, casing and other related services like internal and external coating for all pipe ranges. Additionally, Al-Shaqsy emphasized that GIPI will open up the window of opportunity for Oman to be an exporter of API standard pipes and casing to the GCC region and the world at large. Mr. Al-Shaqsy affirmed GIPI’s commitment to work closely with the Ministry of Manpower and local officials to ensure that priority for job opportunities and development training, focused on the Steel industry, is given to highly energetic and talented Omani youth. GIPI will employ at least 100 staff at full strength, but offshoot services to GIPI are also expected to generate additional employment opportunities.

The Credit Facilities Agreement was signed by Senior Executives of Qatar National Bank, Gulf International Bank, Bank Muscat and Bank Sohar, whilst Mr. Hamdan Al-Shaqsy, CEO of GIPI signed on behalf of the company.

GIPI would be the first ever high pressure steel pipe and casing mill of 24” to be operated in the GCC region. This mill will further enhance the Sultanate’s aspiration for reducing dependency on import of finished products. Developing this downstream venture in the Sultanate will complement similar efforts by the Government towards promotion of local industries.

The Shareholders of GIPI are Awtad a local subsidiary of Islamic Finance Company based in the UAE (30%), Golden Dunes Investments representing local promoters (30%), Gulf Investment Corporation (GIC) based in Kuwait (20%), POSCO Steel Services and Sales Company based in Korea (15%) and Arkan Group LLC based in Oman (5%).