TOCO wins block 9 pipeline

09 May 2003
The Oman Construction Company (TOCO)was awarded in late April a $16 million-18 million contract to install infield pipelines for Occidental Corporation of the US in block 9. The engineering, procurement and construction (EPC) contract covers the supply and installation of three flowlines with a combined length of 167 kilometres and diameters of four-16 inches. Work on the pipelines is set to begin immediately, with completion scheduled for March 2004 (MEED 28:3:03; 28:2:03).

The package is part of the project to increase output from the Safaa field to between 120 million-130 million cubic feet a day (cf/d) of gas. Bids are under evaluation for the main facilities expansion package, which includes the construction of a gas processing train, associated compressor units and trunklines.

TOCO, with its US joint venture partner Wilbros Contracting, is understood to be the low bidder for the main package. Other bidders include: Sharjah-based Petrofac International, with the local Galfar Engineering & Construction; Dubai-based Dodsal,with Mott MacDonaldof the UK; and Sharjah-based Maritime Industrial Services (MIS). Australia's Worley has completed the front-end engineering and design (FEED) studies for both packages. The Safaa field produces between 40,000-45,000 barrels a day of oil and associated gas. Total project costs are estimated at about $100 million.

Occidental, which is the operator of block 9 with a 65 per cent stake, and its partner Japan's Mitsui & Companysigned on 22 April a gas sales agreement with the government to supply up to 130 million cf/d of gas from mid-2004. The gas will assist Oman in fulfilling its agreement with Abu Dhabi-based Dolphin Energyto supply the UAE network with 135 million cf/d of gas until 2006/07 (Oman, MEED Special Report, 2:5:03, pages 25-26).

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