Deadline extended for Sohar fertiliser

23 November 2001

The local Bahwan Trading Companyhas extended the bid deadline to 22 December for the engineering, procurement and construction (EPC) contract on the Sohar fertiliser project. The prospective bidders are Japan's Toyo Engineering Corporation; Germany's Krupp Uhde; and Italy's Snamprogetti, with Mitsubishi Heavy Industries(MEED 16:11:01).

The contract, valued at between $530 million-580 million, calls for the construction of a plant with the capacity to produce 2,000 tonnes a day (t/d) of ammonia and 3,500 t/d of urea. A contract award is expected in the first quarter of next year. Bahwan is forming a new company, Sohar International Urea & Chemical Industries, to manage the plant.

Bahwan is close to finalising the gas supply contract with the government, which has agreed to supply 700,000 million cubic feet of natural gas feedstock over the 25-year operational life of the plant. Negotiations are also at an advanced stage for the offtake contracts with three potential customers and project sources say commercial terms have been agreed with at least one of them. HSBC Investment Bankis acting as financial adviser (MEED 27:7:01).

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