WorleyParsons wins Oman petrochemicals contract

30 March 2014

Australian group to oversee development of polyester chemicals complex in Sohar

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
ClientProjectLocationStatus Main contract award
Oman Oil Refineries & Petroleum Industries CompanyLiwa Plastics complexSoharDesign2015
OOC/LG InternationalPTA/PET plantSoharStudy2015
Takamul Investment CompanyPIA plantSoharStudy2016
OOC/IpicChemicals complexDuqmStudy2015
Omani government/BPAcetic acid plantDuqmStudy2015
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.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications