Engineers India Ltd wins contract for engineering design
MUSCAT -- Oman's first asphalt plant, designed to produce paving bitumen to support the country's massive road expansion and modernisation programme, will come on stream in the first quarter of 2010. The project, involving an investment of around $80 million, will be established within the Sohar Refinery complex at the Port of Sohar. When operational, the plant will end the Sultanate's total dependence on imported bitumen for blacktopping the country's burgeoning network of roads.
Yesterday, an agreement was signed awarding a contract for the Front End Engineering Design (FEED) work on the project to Engineers India Limited (EIL), Asia's leading engineering consultancy. Nasser bin Khamis al Jashmi, Under-Secretary of the Ministry of Oil and Gas, inked the deal with R C Verma, General Manager (Marketing) of EIL. Also present at the signing were Dr Ahmed bin Mohammed al Haddabi, Acting CEO of Sohar Refinery Company, Dr Adil al Kindy, CEO of Oman Refinery Company, Dr Ali bin Thabit al Battashi, Director General of Planning and Projects (Ministry of Oil and Gas), and other senior Ministry officials. In remarks to journalists, Nasser al Jashmi said the project was key to Oman's goal of achieving self-sufficiency in bitumen production.
"The government has embarked on an ambitious plan, backed by substantial allocations, in building the country's road infrastructure. This is designed to serve various sectors, particularly tourism. Besides, lately we have also seen a huge increase in the price of bitumen, while sometimes it is also difficult to secure supplies locally as well. So the government has decided to go ahead with this project," he added.
Currently, Oman's requirement of bitumen is entirely imported from neighbouring countries, chiefly Iran and Bahrain. Imported bitumen is primarily of the 60/70 penetration grade for road construction. Total consumption of paving bitumen products is estimated at around 2,500-3,000 barrels per day (bpd), with the demand projected to climb to around 5,000 bpd by 2010. Around 320 barrels of paving grade bitumen is required for every kilometre of highway paved.
According to Dr Al Haddabi, Acting CEO of Sohar Refinery, the bitumen project will further add value to Oman's hydrocarbon resources. "The purpose of adding the bitumen plant in the refinery is to maximum use of the residue. We have residue that goes to the Residual Fluid Catalytic Cracker (RFCC). Now part of it will be diverted to the Vacuum Tower (of the bitumen plant). We will then use blowing technology provided by EIL to produce paving bitumen."
The project will initially produce three grades of bitumen -- 30/40, 60/70 and 80/90 -- with the possibility of a fourth grade being added in the future. The bitumen output will be used for roads, airport surfaces and high elevated places. "At the moment we are only considering paving bitumen, but we are also discussing the potential for waterproofing and other types of bitumen," Dr Al Haddabi added.
The Sohar bitumen facility will consist of a Vacuum Distillation Unit, Bitumen Blowing Unit Reed, Product Storage Tanks, Product Despatch Facilities for truck loading, and pumping facilities. While the bitumen will be transported by trucks, provision will be made in the future to load the product into ships for export. Significantly, development of the project will be fast-tracked to help create a domestic source of bitumen supply for the country's future road network expansion programme. Upon the completion of the FEED work within seven months, a contractor will be appointed to execute the project on an Engineering-Procurement-Construction (EPC) basis. Sohar Refinery will take up the EPC work parallel to the FEED work to ensure project completion by end-2009.
EIL, a Government of India undertaking, was awarded the contract by the Tender Board based on a techno-economic evaluation of various bids for the contract. EIL specialises in providing engineering and technical services projects related to petroleum refining, pipelines, petrochemicals, oil and gas processing, offshore structures and platforms, fertilisers, metallurgy and power. Its field of expertise also includes IT, airports, mass rapid transport systems, ports & terminals, power projects, renewable energy, and urban development projects.
By Conrad Prabhu
© Oman Daily Observer 2007
