Oman receives Sohar refinery expansion bids

29 May 2013

Bid list for major downstream project dominated by South Korean companies

Oman has received bids from six consortiums on the expansion of its oil refinery in the northern port city of Sohar in a list dominated by South Korean companies, according to a source close to the bidding process.

Project owner Oman Refineries & Petroleum Industries Company (Orpic) is expanding the refinery’s capacity to 187,000 barrels a day (b/d) from 116,000 b/d to meet growing demand for fuel and petrochemicals feedstock.

Companies and consortiums submitting engineering, procurement and construction (EPC) bids on the 20 May deadline were:

  • GS E&C (South Korea) / Larsen & Toubro (India)
  • Daelim (South Korea) / Petrofac (UK)
  • Hyundai E&C (South Korea)
  • Samsung Engineering (South Korea) / Chiyoda Corporation (Japan)
  • SK E&C (South Korea)
  • Tecnicas Reunidas (Spain)

The project, which was tendered in December, will include a 71,500-barrel-a-day (b/d) crude distillation unit, a 96,800-b/d vacuum distillation unit, a delayed coker unit, and additional utilities and offsite facilities.

As well as providing extra fuel to meet growing demand in the sultanate, the unit will increase the facility’s propylene production, which will allow Orpic to run its Sohar polypropylene plant at full capacity.

Earlier this month Orpic received the proposals for the procurement of long-lead items for the refinery expansion project.

Orpic is aiming to complete the estimated $1.5bn scheme by the first half of 2016.

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