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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Salalah Methanol reiterates ICV commitment

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Kaushalendra Singh -


SALALAH, OCT 23 -


Giving a major boost to the local companies, Salalah Methanol’s ammonia project has decided to allocate 20 per cent of the project’s value to in-country-value (ICV) at a meeting held on Monday at Hilton Salalah Resort.


The meeting was held under the joint auspices of Salalah Methanol and Canadian company SNC-Lavalin, which is currently involved in the engineering, procurement and construction (EPC) phase of its anhydrous liquid ammonia plant project, located in Salalah Free Zone.


The whole cost of the project is $460 million out of which $103mn would go against the ICV.


Awadh bin Hassan al Shanfari, CEO of Salalah Methanol, reiterated the company’s commitment to promote the local companies by giving them opportunity to participate in the existing and new projects.


“Today’s meeting with all the stakeholders was an effort to offer a platform to the presenter SNC-Lavalin and the local service providers to let them know and offer the best to each other,” he said.


He put stress on Salalah Methanol’s commitment raise the ICV to a level where all the local suppliers and service providers get benefits from big projects not only in terms of business and finance but also in terms of training and understanding the bidding processes etc.


“It is important for us to keep as much money as possible in Oman, to be more precise, we have to recycle the dollar in the country to give the economy a boost and support the companies which are operating in the country,” he said.


Al Shanfari exhorted the local companies to benefit from the opportunity being offered by the ammonia project by being professional and competitive.


Abdullah al Habshi, Deputy CEO echoed the same by terming the project important not only for Salalah Methanol but for the whole country. “It would be a value addition to natural gas and it would give diversity to the existing operations of Salalah Methanol by better utilisation of available raw materials and during the work there would be contractual requirement to maximise the use of local resources and services in Oman.”


“Minimum 20 per cent expenditure on ICV would give the local service providers an opportunity to interact with the main contractors and understand the tendering processes,” said al Habshi.


Commenting on the current status of the project, Al Habsi said it was under detailed design state and site preparation to start anytime in November. “The project duration is 31 months, which started on July 31, so we are expecting to start operations in the first quarter of 2020.”


SNC-Lavalin is a global and a fully integrated professional services and project management company. It is a major player in the ownership of infrastructure. “From offices around the world, SNC-Lavalin’s employees are proud to build what matters. Our teams provide comprehensive end-to-end project solutions — including capital investment, consulting, design, engineering, construction, sustaining capital and operations and maintenance – to clients in oil and gas, mining and metallurgy, infrastructure and power,” a company representative attending the ICV meet said.


He assured the gathering to do the level best to build a good chain in which SMEs, medium and large companies are given their due.


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