Deadline extended for Sohar refinery

01 March 2002

The local Sohar Refinery Company (SRC)has extended the bid deadline to 1 July for the contract to build the 75,000-barrel-a-day Sohar refinery. The extension is due to the addition of a topping unit to the original scope of the engineering, procurement and construction (EPC) tender. Japan's JGC Corporation, which drew up the designs for the main plant, is completing the front-end engineering and design (FEED) for the new unit (MEED 11:1:02).

The main element of the estimated $800 million-900 million project covers the installation of several units, including gas/oil recovery; residual fluidised catalytic cracker; amine regeneration; indirect alkylation; distillate unionfining process; hydrogen generation; sour water stripping; sulphur recovery; sulphur granulation and packaging; and gasoline hydro-desulphurisation. The cracker will be licensed by UOPof the US.

The EPC contractor will also be responsible for all the civil and electrical works including a substation; an electricity-receiving and distribution network; a seawater intake system; water-cooling, desalination, potable and service water facilities; a steam and condensate system; a fuel gas and natural gas system; an instrumentation and plant air system; chemicals preparation and injection facilities; and a flushing oil system.

Five groups have prequalified to bid for the EPC contract. They are JGC, with Chiyoda Corporation, also of Japan; LG Engineeringof South Korea, with Foster Wheeler Corporationof the US; Paris-based Technip, with Samsung Corporationof South Korea; Toyo Engineering Corporationof Japan, with Hyundai Heavy Industries Companyof South Korea; and Lurgiof Germany, with SK Engineering & Constructionof South Korea, the local Galfar Engineering & Contracting, and Sharjah-based Petrofac International(MEED 23:11:01).

The refinery will supply feedstock to a 340,000-tonne-a-year polypropylene (PP) plant to be built adjacent to the main complex. SRC selected in mid February a team of ABB Lummus Globalof the US and LGas its foreign partner for the PP venture. The ABB-led group will take a 40 per cent stake in a new company that will build, own and operate the estimated RO 80 million ($205 million) PP plant. Contractors expect additional work for the construction of interfaces linking the two facilities to be tendered in the second half of 2002.

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