SNC Lavalin set for central Oman gas project

24 May 2002

A joint venture of Canada's SNC Lavalinand the local Al-Hassan Engineeringhas emerged as the frontrunner for the engineering, procurement and construction (EPC) contract to expand gas treatment facilities at Saih Nihayda. The venture is understood to have submitted the lowest bid, at about $100 million. Three other companies submitted offers in the Petroleum Development Oman (PDO) tender, which was conducted on an electronic bidding (e-bidding) basis. The closing date was 8 May.

The other bidders were Sharjah-based Petrofac International, with the local Galfar Engineering & Contracting; Italy's Snamprogetti; and South Korea's Daelim Engineers & Construction Company(MEED 5:4:02).

PDO says that, based on the lowest price, it has recommended a preferred bidder to the government for final approval.

The contract, which is the first of three packages on the central Oman gas scheme, entails adding a second gas-processing train to the existing facilities at Saih Nihayda to increase capacity by 20 million cubic metres a day (cm/d) to 60 million cm/d.

The second package is for the construction of a 48-inch-diameter pipeline that will tie into the existing gas pipeline infrastructure linking Saih Nihayda with Sur. PDO is scheduled to issue an invitation to bid for this contract in the second half of 2002. Prequalifiers include the SNC Lavalin/Al-Hassan team, Daelim, Galfar, India's Dodsal, and a team of Snamprogetti, Saipem- also of Italy - and Athens-based Consolidated Contractors International Company (CCC).

The final element of the scheme is for the construction a gas booster station that will forward gas to the liquefied natural gas (LNG) plant at Sur. Prequalifiers include SNC Lavalin/Al-Hassan, Daelim, Petrofac, Snamprogetti/Saipem/CCC, Japan's JGC Corporation, and the local Bahwan Engineering Company. PDO is not expected to move ahead with this package before a final decision has been taken by Oman LNGto go ahead with plans for a third-train expansion of its facilities at Sur (Oman, MEED Special Report, 26:4:02, pages 33-34).

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