Oman crude oil pipeline at early feasibility stage

The Omani government is planning to build a crude oil pipeline that will link central Oman to a proposed crude oil storage terminal at Raz Markaz on the country’s Wusta coat.

Chief Executive Officer of Oman Gas Company (OGC), Yousuf bin Mohammed Al Ojaili, said preliminary discussions are under way with the government, as well as the company set up by authorities to oversee the implementation of the Ras Markaz Crude Oil Park.

At a key infrastructure forum held in Duqm, Ojaili said that the project is in “the very early feasibility study stages [...] Discussions are underway with the government and the Oman Tank Terminal Company (OTTCO) on the volumes of oil that will be supplies to the storage tanks at Raz Markas, and the supplies to the refinery proposed in the Duqm area.”

OTTCO plans to develop the terminal in a phased manner. At full capacity, the terminal will hold approximately 200 million bbls of crude. In addition, the facility will serve as an alternative to the Sultante’s only crude export terminal at Mina al Fahal in Muscat.

Provisional plans drawn up by the government envisage a 130 km pipeline that plugs into the main oil line at Nahada and travels to Saih Nihayda. Another 230 km pipeline then channels the crude from Saih Nihayda to Ras Markaz.

The Duqm gas pipeline project

The proposed crude oil pipeline is one of two strategically important pipeline projects that OGC is looking to implement in the Duqm area. While oil pipeline project is still in its infancy, the Duqm gas pipeline project has made much headway in its planned implementation.

“The gas pipeline is a firm project, approval for which has already been granted by the government,” said Al Ojaili. “It’s an infrastructure project that will be ready by 2017 to supply gas to the Duqm Special Economic Zone (SEZ).” The 36 in. diameter pipeline will supply natural gas from Oman’s central fields at Saih Nihayda to major industrial and petrochemical consumers due to be established within the SEZ in the coming years.

Petrofac Daelim JV wins $2.1bn Sohar Refinery Project

MUSCAT — Petrofac, the international oil and gas services provider, in a 50/50 joint venture with Korean based Daelim Industrial Co Ltd (Daelim) says it has been awarded a 36 month Engineering, Procurement and Construction (EPC) contract by Oman Oil Refineries and Petroleum Industries Company (ORPIC). The contract value is $2.1 billion.
The scope of work encompasses engineering, procurement, construction, start-up and commissioning services at the refinery. The contract includes improvements at the existing facility as well as the addition of new refining units.

The refinery was originally constructed and commissioned in 2006 and ORPIC is now investing in improvements at the site to enhance the current production capacity. When complete, it is anticipated that the revamped facility will increase current output by more than 70 per cent.

Subramanian Sarma, Managing Director of Petrofac’s Onshore Engineering & Construction business, commented: “Partnering with Daelim to deliver this project leverages our respective delivery capability for the refinery market, complementing our existing track record. We have also been executing projects in Oman since 1988, having a detailed appreciation for the operating environment. ORPIC is a new customer for us and we look forward to strengthening our relationship as the project progresses.”

CK Lee, President and CEO of Daelim’s overseas business development, commented: “Combining our strengths with those of Petrofac provided a compelling and competitive proposal for the project. As one of our core markets, we have extensive experience in the Middle East and are delighted to be taking that expertise into Oman for ORPIC. We also share the same ethos as Petrofac in our commitment to developing the local energy sector and look forward to working with them to deliver the project.”
Most recently, Petrofac has completed the Kauther depletion compression project in Oman which it was executing for Petroleum Development Oman (PDO), on behalf of the Government of Oman.

(OEPPA Business Development Dept)