10 August 2015
MUSCAT: State-owned Oman Oil Refineries and Petroleum Industries Company (Orpic) said the company has received five technical bids for a polymers plant in Sohar industrial area and three technical bids for an NGL extraction plant in Fahud, which are part of its mega petrochemical project -- Liwa Plastics Industries Complex.
Bidding is now underway for four engineering, procurement and construction (EPC) bid packages of Orpic's Liwa Plastics Industries Complex, which consists of a polymers plant in Sohar's industrial area, an NGL extraction plant in Fahud, a steam cracker plant, and a 300-km pipeline from Fahud to Sohar, according to a company release.
A number of bids are also expected on the steam cracker and pipeline packages by mid-August.
$4 billion loan
Orpic is aiming to raise $4 billion for this project, and targeting to sign financing agreements concurrently with the award of the EPC contracts.
"It is positive to see so many strong technical bids submitted from several notable proponents and joint venture partners. This project will be one of the largest in the region, and we expect to be making a significant impact on the local economy through EPC works alone," said Musab Al Mahruqi, chief executive officer of Orpic.
Evaluation of bids
Orpic is on track to conclude evaluation of bids for all the packages early October 2015, with the final investment decision to be decided by the end of October 2015. Once bids are submitted for the remaining two packages, they will be evaluated in October 2015 and awarded soon after.
"We are currently in discussion with eight export credit agencies regarding project due diligence, and the terms and conditions of financing this project, and we plan to launch requests for proposals to commercial banks over the coming month," Al Mahruqi added.
The project has already obtained environmental permits from the Ministry of Environment and Climate Affairs, and has been granted gas allocation, and is finalising the gas supply agreements, with the Ministry of Gas.
Land agreements with Sohar industrial Port Company and Sohar Free Zone are scheduled for signing this month, with the land agreement for Fahud also scheduled for signing with the Ministry of Housing.
All technical and commercial terms and conditions for supply of utilities, such as electricity and cooling water, have been finalised with Majees and Majan.
"Orpic's Liwa Plastics Industries Complex is not only expected to generate significant financial returns to the shareholders, but will also further diversify Orpic's product mix and intensify its downstream business operations -- supporting the company's firm entry into the petrochemicals market. This is a very exciting period for Orpic," noted Al Mahruqi.
MUSCAT: State-owned Oman Oil Refineries and Petroleum Industries Company (Orpic) said the company has received five technical bids for a polymers plant in Sohar industrial area and three technical bids for an NGL extraction plant in Fahud, which are part of its mega petrochemical project -- Liwa Plastics Industries Complex.
Bidding is now underway for four engineering, procurement and construction (EPC) bid packages of Orpic's Liwa Plastics Industries Complex, which consists of a polymers plant in Sohar's industrial area, an NGL extraction plant in Fahud, a steam cracker plant, and a 300-km pipeline from Fahud to Sohar, according to a company release.
A number of bids are also expected on the steam cracker and pipeline packages by mid-August.
$4 billion loan
Orpic is aiming to raise $4 billion for this project, and targeting to sign financing agreements concurrently with the award of the EPC contracts.
"It is positive to see so many strong technical bids submitted from several notable proponents and joint venture partners. This project will be one of the largest in the region, and we expect to be making a significant impact on the local economy through EPC works alone," said Musab Al Mahruqi, chief executive officer of Orpic.
Evaluation of bids
Orpic is on track to conclude evaluation of bids for all the packages early October 2015, with the final investment decision to be decided by the end of October 2015. Once bids are submitted for the remaining two packages, they will be evaluated in October 2015 and awarded soon after.
"We are currently in discussion with eight export credit agencies regarding project due diligence, and the terms and conditions of financing this project, and we plan to launch requests for proposals to commercial banks over the coming month," Al Mahruqi added.
The project has already obtained environmental permits from the Ministry of Environment and Climate Affairs, and has been granted gas allocation, and is finalising the gas supply agreements, with the Ministry of Gas.
Land agreements with Sohar industrial Port Company and Sohar Free Zone are scheduled for signing this month, with the land agreement for Fahud also scheduled for signing with the Ministry of Housing.
All technical and commercial terms and conditions for supply of utilities, such as electricity and cooling water, have been finalised with Majees and Majan.
"Orpic's Liwa Plastics Industries Complex is not only expected to generate significant financial returns to the shareholders, but will also further diversify Orpic's product mix and intensify its downstream business operations -- supporting the company's firm entry into the petrochemicals market. This is a very exciting period for Orpic," noted Al Mahruqi.
© Times of Oman 2015
