05 June 2004

MUSCAT — Oman Refinery Co. (ORC) is planning to invest around RO45 million ($119 million) in MAF-Sohar Crude Pipeline (MSCP) project to provide feedstock for Sohar Refinery Co. (SRC). The new crude oil pipeline shall start in ORC area at Mina Al Fahal (MAF) and to be ended at SRC located at Sohar in the port area. The estimated pipeline length is 266km, which makes it one of the biggest of its kind in the Sultanate.

This fast track project will be completed in 567 days, including pre-commissioning and commissioning activities. Its basic objective is to provide SRC with sustained feedstock of crude oil.

The new 24-inch pipeline will go along Al Batinah coast from ORC’s Mina Al Fahal facility to Sohar with initial required capacity of 116,000bpsd of mixed Crude Oil and Long Residue (LR). This capacity will be increased in the future to accommodate 160,000bpsd of Oman Export Blend Crude Oil. The pipeline routing, which will go through urban areas in Muscat Governorate crossing mountains and wadis is one of the critical and challenging points that ORC oversaw and resolved during the course of project approval.

The pipeline will be operated and managed by ORC through state-owned Oman Gas Company (OGC). OGC have managed and operated similar projects in the past like the 32-inch gas pipeline from Fahud to Sohar.

ILF and Partner handled the Front End Engineering Design (FEED) of the pipeline and Mott MacDonald will oversee the project execution as Project Management Consultant (PMC).

Recently ORC awarded the Engineering, Procurement and Construction (EPC) to Saipem/CCC joint venture for the cost of RO34,064,500.

Five other leading engineering firms bid for ORC’s contract to build the MSCP project on an engineering, procurement and construction (EPC) basis, Dodsal, Tekfen Construction and Installation Co, consortium of Technip/ Punj Lioyd/ Al Hassan, Stroytrans gas and Bahwan Engineering and The Oman Construction Company (TOCO)/ Wilbros.

© Times of Oman 2004