Prequals in for mixed-feedstock line

29 August 2003
Oman Gas Company (OGC)is expected to invite in September 10 groups to bid for the contract to build a mixed-feedstock pipeline between Sohar and Mina al-Fahal. Eighteen companies applied in mid-August to prequalify for the contract (MEED 25:7:03).

They include the local Al-Hassan Engineering, with India's Punj Lloyd; South Korea's Samsung Corporation; Italy's Saipem; Italy-based Techint; Dubai-based Dodsal; Erko Constructionand Tekfen, both of Turkey; Russia's Stroytransgas; Galfar Engineering & Contracting, The Oman Construction Company (TOCO)and Al-Shanfari Trading Company, all local; Dubai-based DUTCO with McConnell Dowellof New Zealand; Egypt's Enppi Engineering; China Petroleum Engineering & Construction; and Indian Oil Corporation.

The contract covers the supply and construction of a 260-kilometre-long, 24-inch-diameter pipeline to transport crude oil and naphtha from Mina al-Fahal to Sohar. The pipeline will have the capacity to transport 116,000 barrels a day of feedstock. ILF & Partners Oman, a subsidiary of ILF & Partnersof Germany, has completed the front-end engineering and design work. OGC is also expected to invite consultants to bid in September for the contract to provide project management services for the scheme.

Oman Refinery Companyhas invited firms to prequalify for the contract to build a receiving terminal at Sohar for the pipeline. Companies have until 15 September to register their interest in the scheme. Total costs for both elements of the project are in the region of $200 million (MEED 21:2:03; 17:1:03).

Plans for the pipeline project's financing are also moving ahead. The three shortlisted bidders for the financial advisory mandate are due to give their presentations in Muscat at the beginning of September. They are Arab Petroleum Investments Corporation (Apicorp)with Allen & Overy, ANZ Investment Bankwith Denton Wilde Sapte, and BNP Paribas with Simmons & Simmons (MEED 22:8:03, Banking & Finance).

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