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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Petrofac reinforces position in Oman’s refining, petchem sectors

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Muscat, April 14 - Oman as emerged as the second most important market globally for UK-based international oilfield services contractor Petrofac, generating $939 million in revenues from contracts undertaken for customers in 2018. Petrofac is a key player in Oman’s upstream, refining and downstream petrochemicals sector with an order book currently estimated at $5 billion. Its clients include Petroleum Development Oman, Duqm Refinery, BP Oman, Oman Oil Company.


According to the company’s newly published Annual Report, revenues earned by the its Engineering & Construction division totalled around $596 million last year, while the Engineering & Production Services division generated around $393 million, resulting in revenues of $939 million for the year. In effect, the Sultanate came only second to fellow GCC member Kuwait in revenues earned through contracts from customers, totalling $1.651 billion last year.


Among the major contracts awarded to Petrofac last year was the $265 million Marmul Polymer Phase 3 Project of Petroleum Development Oman (PDO). It was the first award to be secured under a 10-year Framework Agreement with PDO signed in 2017, which enables Petrofac to provide EPCm support services for PDO’s major oil and gas projects.


“The scope of the MPP3 project involves EPC support for the extension of off-plot and on-plot production facilities associated with around 500 producing and 75 injector wells. In line with our commitment to further increasing in-country value, we will undertake the engineering, procurement and project management activities in Muscat, Oman,” said Petrofac in its report.


Last December, Pefrofac received its second contract under the Framework Agreement – a $115 million award for the development of the Qarn Alam Co-Generation Project for PDO. The 36-month project scope includes installation and commissioning support for a Gas Turbine Generator Package with one Heat Recovery Steam Generator at the power plant which was built to support oil extraction in Oman’s central region.


In the south of the country, Petrofac is making significant headway in the construction of the Salalah Liquefied Petroleum Gas (SLPG) project, which it is undertaking under a $600 million contract awarded in 2017. Last December, it announced the successful installation of huge roofs atop a pair of LPG storage tanks built at the construction site in Salalah. In addition to the construction of the LPG unit and associated facilities at Salalah Free Zone, Petrofac’s contract includes tie-ins to existing pipeline infrastructure, together with LPG storage and jetty facilities at the Port of Salalah.


“By the year-end, the project had achieved over 95 per cent project engineering progress, with around 53 per cent progress overall,” Petrofac stated.


The Annual Report also highlights Petrofac’s investment in Oman through its In-Country Value (ICV) programme. “Through our wider ICV programmes, we quantify the scale of our investment in the Sultanate — which, cumulatively, is valued at US$1.5 billion,” the Oil & Gas services engineering and contracting giant said.


Exemplifying this investment is the Takatuf Petrofac Oman (TPO) technical training centre which has been established at Knowledge Oasis Muscat (KOM. Set up with an investment of $30 million, TPO is the product of a 60:40 joint venture between the human capital solutions provider Takatuf and Petrofac. It welcomed its first cohort of students in May 2018.


“The TPO investment demonstrates the strength of our commitment,” says Petrofac. “The TPO facilities combine interactive workshops and digital classroom content with augmented reality (AR) learning and immersive, practical experiential training in workshops and four specialised live process plants. Towering nine metres above the ground, these facilities have exactly the same look, feel and functionality as live hydrocarbon assets. This enables trainees to work through real-life scenarios, like a start-up or even an emergency shut-down — getting all of the reality, with none of the risks.”


Other major engineering contracts and projects in various stages of implementation in the Sultanate include PDO’s Rabab Harweel Integrated Project ($1 billion), PDO’s Yibal Khuff project (0.9 billion), Phase 2 of BP Oman’s Khazzan Gas Project ($0.8 billion), and Duqm Refinery ($1.1 billion).


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