Australia-based WorleyParsons has been awarded the contract to manage the development of a polyester chemicals project in Sohar, Oman, which is being developed by a joint venture of state-owned Oman Oil Company (OOC) and South Korea’s LG international.

The project management consultancy (PMC) contract will see WorleyParsons oversee the engineering, procurement and construction (EPC) phase of a plant to produce purified terephthalic acid (PTA) and polyethylene terephthalate (PET).

According to sources, OOC/LG will not appoint a front-end engineering and design (feed) contractor for the project, but they are expected to announce a deal for the process technology in the coming months.

Selected Oman petrochemicals projects
Client Project Location Status  Main contract award
Oman Oil Refineries & Petroleum Industries Company Liwa Plastics complex Sohar Design 2015
OOC/LG International PTA/PET plant Sohar Study 2015
Takamul Investment Company PIA plant Sohar Study 2016
OOC/Ipic Chemicals complex Duqm Study 2015
Omani government/BP Acetic acid plant Duqm Study 2015
OOC=Oman Oil Company; PTA=Purified terephthalic acid; PET=Polyethylene terephthalate; PIA=Purified isophthalic acid; Ipic=International Petroleum Investment Company. Source: MEED

The plant will have the capacity to produce 1.1 million tonnes a year (t/y) of PTA and 500,000 t/y of PET, which is used to make plastic drinks bottles and other packaging.

The project is expected to cost $850m. Market sources have indicated that OOC/LG aim to appoint an international bank as a financial adviser, then partner them with an Omani bank to oversee raising finances for the project.

OOC subsidiary Takamul Investment Company is planning to build a plant in Sohar to produce up to 100,000 t/y of purified isophthalic acid. The intermediate chemical will be combined with the PTA from the OOC plant to produce PET.

According to industry sources, Takamul is in the process of appointing a feed contractor for the project.