Construction

Downstream: Oman LNG has awarded the engineering, procurement and construction contract for the liquefaction plant at Al-Ghalilah to the Japanese/UK/local Chiyoda-Foster Wheeler & Company.

Upstream: Petroleum Development Oman (PDO) awarded the three major contracts in November:-

– Upstream gathering system and interfield pipelines: India’s Dodsal

– Upstream facilities: Italy’s Snamprogetti, Bechtel of the US, and the local Galfar Engineering & Contracting.

– Gas supply pipeline from fields in central Oman to the coastal liquefaction plant: Saipem and Snamprogetti, both of Italy and Athens-based Consolidated Contractors International Company.

Finance

Downstream: Oman LNG received in November unconditional underwriting commitments from seven banks to provide a $2,000 million loan. Four export credit agencies (ECAs) have also provided commitments to cover part of the loan. The loan is expected to go to syndication early this year, with formal financial close anticipated in the second quarter. Shareholders are to provide equity of $500 million.

The ECAs are the UK’s Export Credits Guarantee Department, Nederlandsche Credietverzekering Maatschappij, Italy’s SACE, and the Export-Import Bank of the US. The Overseas Private Investment Corporation, also of the US, has announced that it will provide political risk insurance of up to $200 million.

Upstream: Government and the foreign shareholders – Shell, Total and Partex – in Petroleum Development Oman (PDO) signed an agreement on 22 October under which the foreign shareholders will raise $1,400 million to finance the upstream development.