Value-addition: Petrofac to execute project on engineering, procurement and construction (EPC) basis
Business Reporter –
MUSCAT, Jan. 9
UK-based international oil services contractor Petrofac has been awarded a contract to construct a major liquefied petroleum gas (LPG) extraction plant at the Salalah Free Zone at a cost of around $600 million.
The client is Salalah LPG SFZCO LLC (SLPG), a wholly owned subsidiary of Oman Oil Facilities Development Company LLC (OOFDC), which itself is part of the government’s energy and strategic investment firm Oman Oil Company SAOC. Petrofac will undertake the engineering, procurement and construction (EPC) of its Salalah LPG extraction project in the free zone.
Under the terms of the 36-month lump sum EPC contract, which will be triggered when SLPG’s issues to Petrofac the Notice To Proceed (NTP), Petrofac’s scope of work will include construction of the liquefied petroleum gas (LPG) unit and associated facilities, including tie-ins to existing pipeline infrastructure, together with LPG storage and jetty facilities at the Port of Salalah.
Marwan Chedid, Petrofac Group Chief Operating Officer, commented: “This contract is our eleventh in the Sultanate and reinforces our commitment to Oman where we have been present since 1988.
“This project will further support our commitment to increase in-country value. We will continue to maintain strong focus on this aspect of our delivery, particularly by engaging the local supply chain and recruiting local resources. We are very much looking forward to growing and strengthening our team working alongside OOFDC to deliver this project.”
The state-of-the-art plant, which will be designed and built in compliance with strict HSE principles, will allow for the very high recovery of propane, butane and condensates from natural gas flowing through OOFDC’s southern gas grid. Around 1,000 people will be engaged in the construction of the complex which, when operational, will provide employment to some 170 highly skilled technical staff.
While the free zone will house the LPG extraction plant, LPG and condensate storage facilities, as well as an export jetty, are proposed to be construction at the adjoining port. Also as part of the project, gas and liquid pipeline networks will be built in Salalah.
The project is expected to generate employment and industrial growth opportunities in the Salalah area. It will also secure supplies of cooking gas to the Dhofar area, instead of the current practice of trucking supplies by road from oilfield locations.