Petrofac wins $350m Kauther gas compression contract from PDO

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MUSCAT -- PetrofacPetrofac, the international oil and gas facilities service provider, has been awarded a contract worth more than $350 million for the Kauther gas-field depletion-compression project. The contract was awarded on behalf of the Government of Oman by Petroleum Development Oman (PDO)Petroleum Development Oman (PDO), which has been developing the Sultanate's gas fields on behalf of the Government since 1978. PetrofacPetrofac will undertake the engineering, procurement and construction (EPC) of the gas compression system, and associated facilities at the Kauther gas plant, in addition to undertaking the commissioning and six months of initial operations.

The project follows the successful completion of the Kauther gas plant in 2007, which PetrofacPetrofac built on an EPC basis for PDOPDO, including commissioning and operations. The RO 171 million Kauther Gas plant can process up to 20 million cubic metres per day of gas destined for the Omani market. The gas is collected via a gathering system involving lengthy bulk lines, three remote manifolds and over 40 km of flow-lines hooked up to 14 production wells. The processed gas is exported to the Government Gas System via an 85-kilometre pipeline from where it is delivered to customers in Muscat and Sohar area.

Condensate, valuable hydrocarbon liquids produced along with the gas, is transported via a 103 kilometre pipeline to the Saih Rawl Central Processing Plant and onto the Mina Al Fahal crude export terminal via PDOPDO's Main Oil Line. The Kauther plant was built in record time and came on stream two months ahead of schedule. The Kauther field was discovered in 2001 and development of the field was fast-tracked by the Gas Board, representing our 100 per cent government shareholder construction of the Kauther plant started in mid-2005 and involved the execution of four parallel contracts; the Kauther Gas Plant, the gas and condensate pipeline network, electrical overhead lines and the field gathering system.

In early 2008, PetrofacPetrofac was asked to carry out the front end engineering and design (FEED) for the gas depletion-compression project and then invited to submit a commercial proposal for the EPC on a negotiated basis. Maroun Semaan, group chief operating officer of PetrofacPetrofac, commented: "We are delighted to have successfully secured the Kauther gas depletion compression project. This award serves to further reinforce Petrofac'sPetrofac's commitment to the Omani market, gives us continuity of business in the Sultanate and again highlights Petrofac'sPetrofac's continued competitiveness in the Middle East."

By A Staff Reporter

© Oman Daily Observer 2009