16 January 2007
MUSCAT -- The Petroleum Development Oman (PDO) yesterday signed a contract with Tecnicas Reunidas Oman (TR Oman) for the engineering, procurement and construction of the facilities for the Saih Rawl Depletion Compression project.

The contract includes a 120-megawatt power station, a state-of-the-art plant containing four electric gas-compression trains, and the installation of a power distribution system connecting the Saih Rawl area with Qarn Alam and Saih Nihayda.

The contract was signed by John Malcolm, PDO managing-director, and Jos Luis Gutierrez Rexach, managing director of Tecnicas Reunidas, in the presence of Nasser bin Khamis bin Ali Al Jashmi, undersecretary at the Ministry of Oil and Gas and other senior officials.

Work has already begun and the project is expected to go onstream is expected in the second quarter of 2009.

Gas Director at PDO Abla Al Riyami described the project as "an important project aimed at securing PDO's long term gas exports ability and to supply on-spec gas to Oman's two gas liquefaction plants at Qalhat as well as contributing to the supply of the Sultanate's domestic gas market."

"I would like to conclude by welcoming TR in our community and looking forward to working together in this and future projects," Abla said.

"This strategic project undertaken by PDO on behalf of the government is a major investment in the Sultanate's gas infrastructure," John Malcolm said.

The Saih Rawl gas field in central Oman started producing in 1999. The field represents the backbone of the country's gas supply infrastructure primarily used to feed the LNG industry at Sur.

The field plays another pivotal role as a back up for the local industry supply when other gas plants are down for maintenance or operational reasons.

SRDC is, therefore, a very critical project as it ensures the continuation of Saih Rawl production and potential production of nearby green fields, says Abla.

The project is also important for the Gas Directorate and PDO, as it is a flagship for the forthcoming major compression projects. It will therefore set the scene how the future compression projects in particular and growth projects in general are run.

"Today is a key moment in the SRDC project where we see the results of excellent efforts put together by an integrated team for the past two years. The challenge now is to move on maintaining the momentum and deliver the final product safely" Abla said.

PDO accounts for about 90 per cent of the country's crude-oil production and nearly all of its natural-gas supply. The company is owned by the Government of Oman (60 per cent stake), Shell Group (34 per cent), Total (4 per cent) and Partex (2 per cent). Gas fields are operated by PDO exclusively on behalf of the Omani government.

The Spanish TR Group is a general contracting company engaged in the engineering and construction of industrial facilities in various fields including power and oil and gas.

TR has aligned with Bahwan Engineering Com-pany (BEC) as their local partner to form TR Oman.

© Times of Oman 2007