22 March 2011
MUSCAT: Petroleum Development Oman (PDO), the country's biggest oil and gas producer, is expected to pre-qualify contractors for building a green field $250 million-gas processing facility at the Lekhwair gas field.

The project will treat about 106 million cubic feet (or 3 million cubic metres) a day of wet, sour natural gas from the Lekhwair gas field, according to sources at one of the contracting firms.

The scope of work for the project will include the construction of a field gathering system, associated gas export facilities, condensate export pipelines and a liquid surge tank.

This is quite a large project, which will run for three years to complete. The whole project is expected to start operation by late 2014. Over 20 companies have evinced interest in the erection, procurement and construction (EPC) contract, which include leading engineering firms from South Korea and the United Kingdom.

The contracting firms showed interest in the project include Al Hassan Engineering Company, Galfar Engineering & Contracting, GS Engineering & Construction, Hyundai Engineering & Construction, Samsung Engineering and Petrofac.

The tender for the project was sent out in December and submission for technical bid to pre-qualify companies was posted twice -- initially from March 5 to March 13 and subsequently to March 29.

The shortlisted companies will be asked to submit financial bids and Petroleum Development Oman will announce the winner some time in the second quarter of 2011.

Holland's Tebodin Consultants & Engineers carried out a portion of the front end engineering and design (FEED) for the scheme.

The FEED scope covered the field gathering system and associated gas export and condensate export pipelines for the new gas plant in Lekhwair.

PDO's in-house team carried out selected consultancy work as well as FEED services for the 'off plot' section of the project.

The feed was completed on time and with no problems and the site is now ready for construction work to begin. 

© Times of Oman 2011