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

ExxonMobil lets contract for Antwerp refinery

12/17/2014 ExxonMobil Petroleum & Chemical BVBA has let an engineering, procurement, and construction contract to Fluor Corp. for a delayed coker to be in...

Turkish refinery secures Canadian financing

12/16/2014 Export Development Canada (EDC) said it is participating as lead arranger in the $3.3 billion debt-financing consortium supporting STAR Rafineri AS...

Angola’s Sonangol secures $2 billion loan for refinery, other projects

12/15/2014 China Development Bank (CDB) has extended a $2 billion line of credit to state-owned Sonangol EP to support expansion projects in Angola’s oil and ...

Pertamina plans $25 billion revamp of Indonesian refineries

12/15/2014 PT Pertamina (Persoro) has entered agreements with Saudi Aramco, JX Nippon Oil & Energy Corp., and China Petroleum & Chemical Corp. (Sinope...

Phillips 66 advances plans for splitter at Sweeny refinery

12/11/2014 Phillips 66 has filed an application with state regulators for a permit to build a condensate splitter at its 247,000-b/d Sweeny refinery in Old Oc...

Samref wraps Yanbu refinery revamp

12/11/2014 Saudi Aramco-Mobil Refinery Co. Ltd. (Samref), a 50-50 joint venture of Saudi Aramco and ExxonMobil Corp. subsidiary Mobil Yanbu Refining Co. Inc.,...

BPCL adds petrochemicals to Kochi refinery expansion

12/09/2014 Bharat Petroleum Corp. Ltd. (BPCL), Mumbai, plans to diversify into petrochemicals production as part of the ongoing integrated expansion and upgra...

Pemex lets contract for delayed coking unit

12/04/2014 Petroleos Mexicanos (Pemex) has let a contract to Fluor Corp. unit ICA Fluor’s industrial engineering-construction joint venture with Empresas ICA ...

Gazprom Neft reviews progress on refinery modernization efforts

12/03/2014 The second phase of JSC Gazprom Neft’s program to modernize and upgrade its Russian refineries to improve processing capacities, oil conversion rat...

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


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