SNC signs Saih Nihayda contract

26 July 2002

Canada's SNC Lavalin, with the local Al-Hassan Engineering Company, signed on 23 July the engineering, procurement and construction (EPC) contract for the expansion of the Saih Nihayda gas plant in central Oman. The Canadian-led team was the lowest of four bidders for the project at about $115 million. The bid was submitted in May via a new e-bidding system. The client is Petroleum Development Oman (PDO- MEED 17:5:02).

The contract is the first of three packages to expand production from the central Oman gas fields by 20 million cubic metres a day (cm/d) to 60 million cm/d. PDO is expected to invite prequalified companies to bid in the fourth quarter for the remaining two packages, which involve the construction of a 48-inch-diameter gas pipeline tying into the existing infrastructure to link Saih Nihayda with the liquefied natural gas (LNG) plant at Sur, and a gas booster station (Oman, MEED Special Report, 26:4:02, pages 33-34).

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