Sohar refinery construction moves ahead in Oman; subcontracts let

By Eric Watkins
Middle East Correspondent

NICOSIA, Nov. 19 -- JGC Corp. of Japan has awarded subcontracts to three international companies for construction works at Oman's Sohar refinery 250 km northwest of Muscat.

Chicago Bridge & Iron Co. (CB&I) of the US received a $50 million contract for engineering, material supply, fabrication, construction, testing, painting, and insulation of 55 miscellaneous storage tanks, 16 spheres, and one elevated water storage tank.

Athens-based Consolidated Contractors International Co. won a $140 million contract to construct and install civil, mechanical, and electrical units, and India's Dodsal & Co. received a $30 million contract for civil works outside the refinery.

Under terms of the contracts, all work is to be completed by early 2006. Refinery start-up is slated for May 1, 2006.

In May 2003, Oman awarded JGC a contract worth $879 million to construct the refinery (OGJ Online, May 20, 2003). JGC will perform the design, procure materials, and manufacture and test facilities for making gasoline, diesel, and liquefied petroleum gas.

The planned refinery will have a crude unit with a capacity of 116,400 b/d and a production capacity of 51,000 b/d of gasoline and 30,000 b/d each of diesel and fuel gas. Sohar also will have a residue fluid catalytic cracking unit with a capacity of 75,260 b/d.

On a visit to the site at the start of construction last month, Oman's Minister of Oil and Gas Mohammed bin Hamad Al Romhi said the Sohar refinery would provide refined oil products for export as well as for domestic requirements. He said BP PLC has agreed to purchase 90% of the refinery's output for 10 years.

The Sohar refinery project also will provide raw material for the planned $200 million Oman polypropylene plant (OPP). The OPP project is a joint venture of state-run Oman Oil Co. (OOC) 60%, South Korea's LG Engineering 20%, and ABB Lummus of Holland 20%.

"We expect financial close before the end of the year and are targeting a debt, equity ratio of 90:10 which shows investor confidence in the Omani economy, in particular, and the region in general," OOC Deputy CEO Ahmed al-Wahaibi told French news agency AFP in October.

"Total project costs, including financing costs during the construction phase, come to $1.205 billion," Ahmed said.

"LG will off-take the polypropylene and we envisage that they will market this mainly in the Far East where there is a growing demand, especially in China," he said, noting that LG has a strong presence in the Chinese petrochemical market.

Related pipeline
Meanwhile, five international companies submitted bids in October for a project management contract to supervise construction of a 220 km crude oil pipeline to the Sohar refinery from the existing refinery in Muscat. The pipeline will have a capacity of 100,000 b/d of a mixture of crude oil and long residue.

Companies bidding on the pipeline include Mott MacDonald of the UK, ILF Consulting Engineers of Munich, Tebodin BV of The Netherlands, and Canadian companies Veco Engineering and Electrowatt Engineering. The bids reportedly range from 660,000 rials submitted by Mott MacDonald to 1.4 million rials from Veco Engineering.

The Sohar refinery is owned jointly by the Sultanate of Oman and state-run OOC

Related Articles

Two Canadian LNG proposals get export nod


Canada’s National Energy Board has approved exports of LNG from two projects under consideration for the Atlantic Coast.

Fire hits Pemex’s Tula refinery

09/11/2015 Operations remain ongoing at Petroleos Mexicanos’ (Pemex) 315,000-b/d Miguel Hidalgo refinery in Tula, Hidalgo, Mexico, after an early morning fire...

Inpex delays production start for Ichthys LNG, increases capacity


Inpex Corp., Tokyo, said it has delayed the production start for the Ichthys LNG project to third-quarter 2017 from yearend 2016.

Unipetrol plans capacity expansion at Litvinov petrochemical complex

09/10/2015 Unipetrol AS has let a contract to a division of Technip, Paris, to build a grassroots polyethylene (PE) production unit at its Chempark Zaluzi pet...

Flint Hills lets contract for Texas refinery expansion

09/10/2015 Flint Hills Resources LLC, a subsidiary of Koch Industries Inc., has let a contract to a unit of Wood Group for work related to Project Eagle Ford ...

US House poised to approve crude export ban repeal, bill’s sponsors say

09/10/2015 The US House is likely to move quickly and approve legislation repealing a 40-year-old ban on exports of domestically produced crude oil, Reps. Joe...

Cedigaz: Marketed gas output up slightly

09/10/2015 Global growth in marketed production of natural gas remained low in 2014 as competition from coal in Europe and Asia, the economic slowdown in Chin...

Slovnaft wraps unit installation at Bratislava petchem site

09/10/2015 Slovnaft AS has completed installation of a low-density polyethylene production plant, LDPE 4, at its existing 220,000-tonne/year (tpy) ethylene pr...

Thai operator lets second FEED for proposed US ethylene complex

09/09/2015 PTT Global Chemical (PTTGC), Thailand’s integrated petrochemical and refining company, has let a contract to a consortium led by Bechtel Enterprise...
White Papers

Definitive Guide to Cybersecurity for the Oil & Gas Industry

In the Oil and Gas industry, there is no single adversary and no single threat to the information tech...

UAS Integration for Infrastructure: More than Just Flying

Oil and gas companies recognize the benefits that the use of drones or unmanned aerial systems (UAS) c...

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by
Available Webcasts

Better Data, Better Analytics, Better Decisions

When Tue, Oct 27, 2015

The Oil & Gas industry has large amounts of data stored in multiple systems which are purpose built for certain tasks. However, good decisions require insights based upon the data in all of these systems. These systems in turn do not talk to each other. So the process of analyzing data, gaining insights, and making decisions is a slow one and often a flawed one. Good decisions require accurate analytics and accurate analytics require superior/sustainable data quality and governance. This webinar focuses on:

  • The importance of data quality and governance
  • How technological advances are making data quality and governance sustainable in order to get the accurate analytics to make solid decisions.

Please join us for this webcast sponsored by Seven Lakes Technologies and Noah Consulting.


Operating a Sustainable Oil & Gas Supply Chain in North America

When Tue, Oct 20, 2015

Short lead times and unpredictable conditions in the Oil & Gas industry can create costly challenges in supply chains. By implementing a LEAN culture of continuous improvement you can eliminate waste, increase productivity and gain end-to-end visibility leading to a sustainable and well-oiled supply chain.

Please join us for this webcast sponsored by Ryder System, Inc.


On Demand

Leveraging technology to improve safety & reliability

Tue, Sep 22, 2015

Attend this informative webinar to learn more about how to leverage technology to meet the new OSHA standards and protect your employees from the hazards of arc flash explosions.


The Resilient Oilfield in the Internet of Things World

Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!


Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected