Oman prepare series of projects for PTA,PET and PIA

The national oil company Oman Oil Company (OOC) and its 92% subsidiary Takamul Investment Company (Takamul) presented a program of new projects covering the petrochemicals, metals and mining sectors.

OOC, as a wholly-owned company by the Government of the Sultanate of Oman is investing in the exploration and production of the local oil and gas resources but is also mandated to contribute to the economical and social development of the country.

On the upstream side OOC partners with foreign companies such as Shell or BP under the classical for joint venture or production sharing contracts.

For the downstream activities, OOC established Takamul in 2006 to promote and facilitate investments in new projects to benefit from the competitive supply of the local upstream sector.

The Sultanate of Oman sees in the downstream chain the major component of its progressive strategy for the future in providing a balanced benefit between the foreign investors and the locals.

In this context, Takamul is to lead this shift in favor of the downstream heavy industry such as petrochemicals.

Some large projects had been already announced in Oman:

 - Duqm refinery for $6 billion capital expenditure

 - Sohar refinery expansion for 1.5 billion capital expenditure

 - Salalah Ethylen Dichloride for $500 million

In addition to these investments, Takamul is working on a list of petrochemical greenfield projects in the magnitude of $500 – $1 billion capital expenditure, some involving OOC and foreign companies.

Oman plans high added value derivatives in Sohar 

On the top of this list Takamul points out a purified terephtalic acid (PTA) and Polyethylene Terephtalate (PET) plant.

To be located in Sohar, Oman, this PTA/PET facility should receive its feedstock from the Sohar refinery.

With $800 million capital expenditure, this new PTA/PET plant should have a capacity of 1 million t/y.

Through Takamul, OOC is working to create the joint venture to lead this PTA/PET project.

If to be aligned on the Sohar refinery expansion, this project be developed on fast track in 2013.

In following this PTA/PET project, Takamul is proposing a metaxylene/PTA project, also in Sohar.

Metaxylene is part of these critical intermediates to produce the high added value petrochemical products interesting Oman.

Metaxylene is the feedstock for the production of purified isophthalic acid (PIA), used for high performance unsaturated polyesters and PET resins.

As metaxylene and PIA are intermediates to be combined primarily with actual hydrocarbons products manufactured by the ORPIC refinery and aromatic units, ORPIC should be involved in these projects.

Furthermore, Takamul is considering a:

 - Polyolefins plant in Sohar to come downstream the ORPIC’s polypropylene project

 - Derivatives plant downstream the Salalah methanol project

 - OOC LPG derivatives facility

In addition Takamul intends to integrate additional functions to support this industrial development in providing utilities, centralized maintenance services, facilities management services. 

With Takamul, the national oil company Oman Oil Company is not only developing an integrated upstream-downstream business model with all the refining and petrochemical projects in perspective, but also setting the foundations for building up a local expertise around the oil and gas and petrochemical sector.  

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

Investing for the future of Oman

The Sultanate of Oman established the Oman Oil Company S.A.O.C. (OOC) in 1992 as the national oil company with the mission to build a prosperous future for Oman regardless country’s direct oil and gas revenues.

This mission still guides the Sultanate’s Vision 2020 for its wholly owned Oman Oil Company to used the oil and gas revenues to develop a diversified, sustainable and global economy by 2020.

In this role OOC identifies the strategic sectors still related to the energy business to invest and set partnerships with foreign private sector investment.

In practice, Oman Oil Company’s strategy is structured around core objectives:

 - Develop and invest in profitable businesses within Oman and internationally

 - Create meaningful employment within Oman

 - Grow talent – business leaders and professionals

 - Maximise value from Oman’s resources

To capture the value chain of the oil and gas industry, Oman Oil Company is focusing on projects in partnership with international investors within:

 - Exploration and production

 - Midstream and shipping 

- Refining and marketing

 - Petrochemicals

 - Power and aluminium

 - Infrastructure

While diversified, Oman Oil Company focuses on energy related projects.

On midstream the Oman Gas Company (OGC), a 80/20 joint venture between the Sultanate of Oman and OOC operates the Oman natural gas pipeline system of 1,800 kilometers, connecting the natural gas fields to the power plants.

In 2007, the Oman Ministry of Finance and OOC decided to merge into the Oman Refinery and Petrochemicals Company (ORPC) the two companies operating the two Oman’s refineries:

 - Oman Refinery Company running the Mina al-Fahal Refinery of 106,000 b/d capacity

 - Sohar Refinery Company in charge of Sohar refinery of 116,000 b/d capacity

In the newly formed Oman Refinery and Petrochemicals Company, the Ministry of Finance holds 75% and Oman Oil Company 25%.

OOC Key Figures

 - Oil production 2012: 915,000 b/d (estimation)

 - Oil production 2011: 889,000 b/d

 - Oil production 2007: 714,000 b/d

 - Natural gas production 2011: 2.75 billion cf/d

 - Oil proven reserves 2012: 5.5 billion barrels

 - Natural gas proven reserves2012: 30 trillion cubic feet (tcf) 

OOC Projects and Business Highlights

To reduce its reliance on the direct revenues of the oil and gas resources, Oman Oil is planning to invest downstream in refining and petrochemicals.

The main projects are the:

 - Expansion of the Sohar Refinery

 - Greenfield Duqm refinery and petrochemical complex on the southeast coast of Oman.

In 2015-16, OOC, through the Oman Gas Company, will connect the petrochemical complex on the southeast coast of Oman.to supply the natural gas feedstock to the petrochemical complex through a 200 kilometers pipeline.

On the petrochemical side, Oman Oil Company created Takamul Investment Company (Takamul) to leads series of projects all above $500 million capital expenditure such as:

 - Salalah methanol

 - Salalah Ethylene Dicholride,

 - Sohar PET/PTA

 - Sohar Metaxylene/PTA.

In developing its downstream sector to reduce its reliance on the oil market, Oman is turning short of natural gas, leading Oman Oil Company to plan new capital expenditure upstream.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

Oman selects Sohar for a $3.6 billion Plastics Project

The Oman Refineries and Petroleum Industries Company (ORPIC) took the opportunity of the Polyolefins Plastics Arabia Conference organized in Muscat in May 2013 to unveil the details of a greenfield world-scale petrochemical complex to be located in Sohar.

As most of the Gulf countries, the Sultanate of Oman is not willing to rely only on upstream sector to develop its economy.

The ongoing development of the conventional and unconventional oil and gas in Central Oman will provide significant additional resources not only for export but also as feedstock for a petrochemical industry.

In order to send the signal of Oman running for high added value polymers, ORPIC has called its project Sohar Plastics Project.

To be integrated to the Sohar Refinery, the Sohar Plastics Project will be developed in close coordination with the Sohar Refinery Improvement Project.

Previously called Sohar Refinery Expansion Project, the Sohar Refinery Improvement Project is more advanced than the Sohar Plastics Projects since CB&I Lummus completed the front end engineering and design (FEED) in 2012.

Since then, ORPIC appointed CB&I Lummus as project manager consultant (PMC) for the qualification of the engineering companies and the preparation of the call for tender of the different engineering, construction and procurement (EPC) packages to be awarded for this Sohar Refinery Improvement Project.

With $1.5 billion capital expenditure, the Sohar Refinery Improvement Project is due to expand the production of the refinery from the current 116,000 barrels per day (b/d) to 176,000 b/d.

As a result the Sohar refinery Expansion project should include a:

 - Crude Distillation Unit (CDU)

 - Vacuum Distillation Unit (VDU)

 - Hydrocracker Unit (HCU) for which Chevron Lummus Global is providing the license

 - Sulfur Recovery Unit (SRU) for which Black and Veatch is the licensor

 - Isomerization Unit (ISOM)

 - PSA Unit for Hydrogen

 - Sour Water Strippers

 - Amine Regeneration

 - Offsites & Utilities

In respect with the actual stage of the bidding process for the EPC contracts, ORPIC is planning with the support of CB&I Lummus as PMC to award the different packages to the engineering companies in the second half of 2013 for the completion of the Sohar Refinery Expansion project in 2016.

ORPIC to award Sohar Plastics Project FEED in 2013

In order to synchronize  the commercial operations of the petrochemical units with the output of the expanded refinery, ORPIC is planning to award the FEED of the Sohar Plastics Project by the end of the year 2013.

In addition to the Sohar Refinery Expansion, the Sohar Plastic Project will benefit from the liquids rich natural gas in Oman.

In Fahud, ORPIC will build a gas treatment plant to separate the natural gas liquids (NGL) from the natural gas.

All the extracted ethane, butane, propane and other condensate will provide valuable feedstock to the Sohar Plastics Project.

From the actual concept, the Sohar Plastics Project should include olefins and aromatics production units:

 - Steam cracker of ethylene

 - High density polyethylene (HDPE)

 - Low density polyethylene

- Linear low density polyethylene (LLDPE)

 - Propylene

 - Polypropylene

 - Benzene

In respect with this basic design the Sohar Plastics Project should have a capacity of:

 - 420,000 t/y of HDPE

 - 420,000 t/y of LDPE

 - 215,000 t/y of polypropylene

 - 168,000 t/y of gasoline

 - 46,000 t/y of benzene

According to these capacities, ORPIC is planning to invest $3.6 billion capital expenditure in Sohar Plastics Projects in expecting it to run into commercial operations in 2018.

 For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

ORPIC Liwa Platics Project to reach FEED stage

The Oman Refinery and Petroleum Industries Company (ORPIC) confirmed to have called for tender the front end engineering and design (FEED) work for its $3.6 billion petrochemical complex to produce plastics in Al-Liwa, close to Sohar in the north of Oman.

To be integrated to the Sohar Refinery after its on-going expansion, the Liwa Plastics Project will stand as the real kick off for the production of these petrochemical added value products in Oman.

With this Liwa Plastics Project, the production of plastics will jump from the current 200,000 tonnes per year (t/y) to 1.4 million t/y by 2018.

This project is part of the Sultanate program to reduce its reliance on the export of crude oil and natural gas in developing its downstream industry to retain more added value in the country considering that each $ billion invested downstream is creating four times more jobs than the same $ billion spent upstream.

For now the existing Sohar refinery is treating 116,000 barrels per day (b/d) of crude oil with propylene output 40% too short to feed the current polypropylene unit next door.

With the Sohar Refinery Improvement Project ORPIC will increase the refinery capacity to 176,000 b/d in order to produce more transportation fuels and to increase the feedstock available for the Liwa Plastics project.

Liwa Plastics Project to adopt mixed steam cracker

While increasing the naphtha deliveries from the Sohar Refinery with the on-going Sohar Refinery Improvement Project, ORPIC decided to adopt the mixed steam cracker technology in order to also accept ethane, natural gas liquids (NGL), mixed liquid petroleum gas (LPG) and other condensate as feedstock.

In this perspective the Liwa Plastics Project includes three parts:

 - Upstream: Gas extraction plant located at Fahud

 - Midstream: 300 kilometers gas export pipeline from Fahud to Sohar

 - Downstream: Sohar Integrated Petrochemical Complex 

Located at Al Liwa where lies the Port of Sohar, the Sohar Petrochemical Complex will include:

 - Mixed Steam Cracker with 800,000 t/y capacity

 - High Density Polyethylene (HDPE) unit with 300,000 t/y capacity

 - Linear Low Density Polyethylene (LLDPE) unit with 500,000 t/y capacity

 - Polypropylene (PP) unit with 215,000 t/y capacity

 - Methyl Tertiary Butyl Ether (MTBE) unit with 40,000 t/y capacity

 - Butane-1 unit with 45,000 t/y capacity

Estimated to require $3.6 billion capital expenditure, the Liwa Plastics Project is now reaching the FEED stage since ORPIC initiated the tendering process.

ORPIC qualified only four bidders for the steam cracker

Focusing on the engineering companies providing their own license for the technology sensitive mixed steam cracker, ORPIC is only considering:

 - CB&I Lummus from USA

 - KBR from USA

 - Linde from Germany

 - Technip from France

On this base ORPIC is planning the FEED work to take 16 months until awarding the engineering, procurement and construction (EPC) contracts for the Liwa Plastics Project expected to run into commercial operations by 2018.

 For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

Takamul at FEED stage for Salalah Ammonia Project

The Omani Takamul Investment Company (Takamul) is moving forward in the downstream sector with petrochemical projects at Salalah in the south of the Sultanate and at Sohar in the north.

Acting as the chemical branch of the Oman Oil Company (OOC or Oman Oil), Takamul benefits also from the guidance of other shareholders such as:

 - Oman Oil 93.07%

 - Abu Dhabi Water & Electricity Authority (ADWEA) 5.01%

 - Al Maha Strategic Industries for Investments LLC 1.92%

With this support, Takamul is working on number of projects such as the Salalah Ammonia Project and the Sohar purified isophthalic acid (PIA) Project.

Through the Salalah Ammonia project, Oman Oil sees a double opportunity to develop the local economy in the south of Oman.

On the supply side, the Salalah Ammonia Project will contribute to monetize a part of the feedstock available from Salalah Methanol Company (Salalah Methanol).

On the demand side, the local production of ammonia will have a major effect on the Sultanate trading balance in reducing the import of nitrogen fertilizer.

In respect with Salalah Methanol capabilities of supply, the Takamul Ammonia project should be sized at world-scale with an investment of $700 capital expenditure.

Takamul is currently working on the front end engineering and design (FEED) of Salalah Ammonia Project to be located adjacent to the existing methanol facility.

Takamul is expecting to see the FEED work completed in 2015, in order to make the final investment decision (FID) in following.

ORPIC to join Takamul in Sohar PIA project

At the other side of the country the Oman Oil subsidiary is planning to invest in high added value petrochemical products with the Sohar PIA Project.

The purified isophthalic acid (PIA) is a critical building block required for the production of polyester.

Located in the north of the Sultanate, Sohar is attracting more and more industries consuming polyester for fibers applications, home furnishing and goods.

In addition Sohar is ideally located to export PIA to the other Gulf countries and in the north of India in competitive conditions.

Takamul competitive advantage relies on its access to cheap and abundant feedstock.

On the supply side, the PIA is produced out of an aromatic called metaxylene.

This metaxylene will be available from the Sohar refinery.

Operated by Oman Oil Refineries and Petroleum Industries Company (ORPIC), the Sohar Refinery is currently under revamping and upgrading project execution.

This expansion will give the opportunity to ORPIC to widen its portfolio of refined products with higher added value output such as the metaxylene.

As Takamul will be its unique client, ORPIC should join Oman Oil in the joint venture to operate this Sohar PIA Project.

With a capacity of 100,000 tonnes per year (t/y) of PIA, Takamul will become a key player of this market.

With the project currently at FEED stage, Takamul and its partners, Oman Oil and ORPIC, expect the Sohar PIA project to start first shipment in 2017.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

CB&I to complete ORPIC Liwa Plastics project FEED

The engineering company CB&I is about to complete the front end engineering and design (FEED) of the petrochemical complex planned by the state-owned Oman Refinery and Petroleum Industries Company (ORPIC) in Al-Liwa, near by Sohar in the north of Oman.

As all the other countries in the Gulf, the Sultanate is looking for building up added value locally in integrating more and more downstream transformations.

With the Liwa Plastics project, Oman is posting its intention to prepare ground for the development of the manufacturing industry.

To be connected to the Sohar refinery, the Liwa Plastics project will multiply the domestic production seven times to reach 1.4 million tonnes in 2018.

Budgeted to $3.6 billion capital expenditure, the Liwa Plastics project covers three main parts:

 - Fahud gas field production

 - 300 kilometers export pipeline to Sohar

 - Al-Liwa petrochemical complex

Benefiting from parallel supply in gas from Fahud and in naphtha from the Sohar refinery, ORPIC and CB&I selected a mixed steam cracker to produce ethylene, propylene, by-products and derivatives.

With a capacity of 800,000 tonnes per year (t/y) of ethylene, this mixed cracker will produce:

 - 300,000 t/y of high density polyethylene (HDPE)

 - 500,000 t/y of linear low density polyethylene (LLDPE)

 - 215,000 t/y of polypropylene

 - 40,000 t/y of methyl tertiary butyl ether (MTBE)

 - 45,000 t/y of Butane-1

ORPIC considers three options for Liwa Plastics EPC

ORPIC is currently working on the different scenari to organize the call for tender to sanction Liwa Plastics engineering, procurement and construction (EPC) contract.

The first option is to launch only one bid for the whole Liwa Plastics project EPC contract

The second option is break up the Liwa Plastics project in three EPC contracts for the:

 - Mixed steam cracker with offsites and utilities

 - Polyethylene and polypropylene units with offsites and utilities

 - Natural gas liquids (NGL) separation with offsites and utilities

The third option is considering six EPC packages covering:

 - Mixed steam cracker

 - Polyethylene units

 - Polypropylene unit

 - NGL separation

 - NGL pipeline

 - Offsites and utilities

In parallel to this evaluation, ORPIC is proceeding to the pre-qualification of the potential bidders for these different packages.

Depending on the potential bidders response ORPIC will select the best scenario to call for tender the Liwa Plastics project on early 2015 in expecting the first production by 2019.

 For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

Oman prepare series of projects for PTA,PET and PIA

The national oil company Oman Oil Company (OOC) and its 92% subsidiary Takamul Investment Company (Takamul) presented a program of new projects covering the petrochemicals, metals and mining sectors.

OOC, as a wholly-owned company by the Government of the Sultanate of Oman is investing in the exploration and production of the local oil and gas resources but is also mandated to contribute to the economical and social development of the country.

On the upstream side OOC partners with foreign companies such as Shell or BP under the classical for joint venture or production sharing contracts.

For the downstream activities, OOC established Takamul in 2006 to promote and facilitate investments in new projects to benefit from the competitive supply of the local upstream sector.

The Sultanate of Oman sees in the downstream chain the major component of its progressive strategy for the future in providing a balanced benefit between the foreign investors and the locals.

In this context, Takamul is to lead this shift in favor of the downstream heavy industry such as petrochemicals.

Some large projects had been already announced in Oman:

 – Duqm refinery for $6 billion capital expenditure

 – Sohar refinery expansion for 1.5 billion capital expenditure

 – Salalah Ethylen Dichloride for $500 million

In addition to these investments, Takamul is working on a list of petrochemical greenfield projects in the magnitude of $500 – $1 billion capital expenditure, some involving OOC and foreign companies.

Oman plans high added value derivatives in Sohar 

On the top of this list Takamul points out a purified terephtalic acid (PTA) and Polyethylene Terephtalate (PET) plant.

To be located in Sohar, Oman, this PTA/PET facility should receive its feedstock from the Sohar refinery.

With $800 million capital expenditure, this new PTA/PET plant should have a capacity of 1 million t/y.

Through Takamul, OOC is working to create the joint venture to lead this PTA/PET project.

If to be aligned on the Sohar refinery expansion, this project be developed on fast track in 2013.

In following this PTA/PET project, Takamul is proposing a metaxylene/PTA project, also in Sohar.

Metaxylene is part of these critical intermediates to produce the high added value petrochemical products interesting Oman.

Metaxylene is the feedstock for the production of purified isophthalic acid (PIA), used for high performance unsaturated polyesters and PET resins.

As metaxylene and PIA are intermediates to be combined primarily with actual hydrocarbons products manufactured by the ORPIC refinery and aromatic units, ORPIC should be involved in these projects.

Furthermore, Takamul is considering a:

 – Polyolefins plant in Sohar to come downstream the ORPIC’s polypropylene project

 – Derivatives plant downstream the Salalah methanol project

 – OOC LPG derivatives facility

In addition Takamul intends to integrate additional functions to support this industrial development in providing utilities, centralized maintenance services, facilities management services. 

With Takamul, the national oil company Oman Oil Company is not only developing an integrated upstream–downstream business model with all the refining and petrochemical projects in perspective, but also setting the foundations for building up a local expertise around the oil and gas and petrochemical sector.  

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

The post Takamul and Oman Oil to add value on petrochemicals appeared first on 2B1stconsulting.

Investing for the future of Oman

The Sultanate of Oman established the Oman Oil Company S.A.O.C. (OOC) in 1992 as the national oil company with the mission to build a prosperous future for Oman regardless country’s direct oil and gas revenues.

This mission still guides the Sultanate’s Vision 2020 for its wholly owned Oman Oil Company to used the oil and gas revenues to develop a diversified, sustainable and global economy by 2020.

In this role OOC identifies the strategic sectors still related to the energy business to invest and set partnerships with foreign private sector investment.

In practice, Oman Oil Company’s strategy is structured around core objectives:

 – Develop and invest in profitable businesses within Oman and internationally

 – Create meaningful employment within Oman

 – Grow talent – business leaders and professionals

 – Maximise value from Oman’s resources

To capture the value chain of the oil and gas industry, Oman Oil Company is focusing on projects in partnership with international investors within:

 – Exploration and production

 – Midstream and shipping 

– Refining and marketing

 – Petrochemicals

 – Power and aluminium

 – Infrastructure

While diversified, Oman Oil Company focuses on energy related projects.

On midstream the Oman Gas Company (OGC), a 80/20 joint venture between the Sultanate of Oman and OOC operates the Oman natural gas pipeline system of 1,800 kilometers, connecting the natural gas fields to the power plants.

In 2007, the Oman Ministry of Finance and OOC decided to merge into the Oman Refinery and Petrochemicals Company (ORPC) the two companies operating the two Oman’s refineries:

 – Oman Refinery Company running the Mina al-Fahal Refinery of 106,000 b/d capacity

 – Sohar Refinery Company in charge of Sohar refinery of 116,000 b/d capacity

In the newly formed Oman Refinery and Petrochemicals Company, the Ministry of Finance holds 75% and Oman Oil Company 25%.

OOC Key Figures

 – Oil production 2012: 915,000 b/d (estimation)

 – Oil production 2011: 889,000 b/d

 – Oil production 2007: 714,000 b/d

 – Natural gas production 2011: 2.75 billion cf/d

 – Oil proven reserves 2012: 5.5 billion barrels

 – Natural gas proven reserves2012: 30 trillion cubic feet (tcf) 

OOC Projects and Business Highlights

To reduce its reliance on the direct revenues of the oil and gas resources, Oman Oil is planning to invest downstream in refining and petrochemicals.

The main projects are the:

 – Expansion of the Sohar Refinery

 – Greenfield Duqm refinery and petrochemical complex on the southeast coast of Oman.

In 2015-16, OOC, through the Oman Gas Company, will connect the petrochemical complex on the southeast coast of Oman.to supply the natural gas feedstock to the petrochemical complex through a 200 kilometers pipeline.

On the petrochemical side, Oman Oil Company created Takamul Investment Company (Takamul) to leads series of projects all above $500 million capital expenditure such as:

 – Salalah methanol

 – Salalah Ethylene Dicholride,

 – Sohar PET/PTA

 – Sohar Metaxylene/PTA.

In developing its downstream sector to reduce its reliance on the oil market, Oman is turning short of natural gas, leading Oman Oil Company to plan new capital expenditure upstream.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

The post Oman Oil Company (OOC) in brief appeared first on 2B1stconsulting.

Oman selects Sohar for a $3.6 billion Plastics Project

The Oman Refineries and Petroleum Industries Company (ORPIC) took the opportunity of the Polyolefins Plastics Arabia Conference organized in Muscat in May 2013 to unveil the details of a greenfield world-scale petrochemical complex to be located in Sohar.

As most of the Gulf countries, the Sultanate of Oman is not willing to rely only on upstream sector to develop its economy.

The ongoing development of the conventional and unconventional oil and gas in Central Oman will provide significant additional resources not only for export but also as feedstock for a petrochemical industry.

In order to send the signal of Oman running for high added value polymers, ORPIC has called its project Sohar Plastics Project.

To be integrated to the Sohar Refinery, the Sohar Plastics Project will be developed in close coordination with the Sohar Refinery Improvement Project.

Previously called Sohar Refinery Expansion Project, the Sohar Refinery Improvement Project is more advanced than the Sohar Plastics Projects since CB&I Lummus completed the front end engineering and design (FEED) in 2012.

Since then, ORPIC appointed CB&I Lummus as project manager consultant (PMC) for the qualification of the engineering companies and the preparation of the call for tender of the different engineering, construction and procurement (EPC) packages to be awarded for this Sohar Refinery Improvement Project.

With $1.5 billion capital expenditure, the Sohar Refinery Improvement Project is due to expand the production of the refinery from the current 116,000 barrels per day (b/d) to 176,000 b/d.

As a result the Sohar refinery Expansion project should include a:

 – Crude Distillation Unit (CDU)

 – Vacuum Distillation Unit (VDU)

 – Hydrocracker Unit (HCU) for which Chevron Lummus Global is providing the license

 – Sulfur Recovery Unit (SRU) for which Black and Veatch is the licensor

 – Isomerization Unit (ISOM)

 – PSA Unit for Hydrogen

 – Sour Water Strippers

 – Amine Regeneration

 – Offsites & Utilities

In respect with the actual stage of the bidding process for the EPC contracts, ORPIC is planning with the support of CB&I Lummus as PMC to award the different packages to the engineering companies in the second half of 2013 for the completion of the Sohar Refinery Expansion project in 2016.

ORPIC to award Sohar Plastics Project FEED in 2013

In order to synchronize  the commercial operations of the petrochemical units with the output of the expanded refinery, ORPIC is planning to award the FEED of the Sohar Plastics Project by the end of the year 2013.

In addition to the Sohar Refinery Expansion, the Sohar Plastic Project will benefit from the liquids rich natural gas in Oman.

In Fahud, ORPIC will build a gas treatment plant to separate the natural gas liquids (NGL) from the natural gas.

All the extracted ethane, butane, propane and other condensate will provide valuable feedstock to the Sohar Plastics Project.

From the actual concept, the Sohar Plastics Project should include olefins and aromatics production units:

 – Steam cracker of ethylene

 – High density polyethylene (HDPE)

 – Low density polyethylene

– Linear low density polyethylene (LLDPE)

 – Propylene

 – Polypropylene

 – Benzene

In respect with this basic design the Sohar Plastics Project should have a capacity of:

 – 420,000 t/y of HDPE

 – 420,000 t/y of LDPE

 – 215,000 t/y of polypropylene

 – 168,000 t/y of gasoline

 – 46,000 t/y of benzene

According to these capacities, ORPIC is planning to invest $3.6 billion capital expenditure in Sohar Plastics Projects in expecting it to run into commercial operations in 2018.

 For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

The post Orpic to invest in greenfield world-scale petrochemical complex appeared first on 2B1stconsulting.

ORPIC Liwa Platics Project to reach FEED stage

The Oman Refinery and Petroleum Industries Company (ORPIC) confirmed to have called for tender the front end engineering and design (FEED) work for its $3.6 billion petrochemical complex to produce plastics in Al-Liwa, close to Sohar in the north of Oman.

To be integrated to the Sohar Refinery after its on-going expansion, the Liwa Plastics Project will stand as the real kick off for the production of these petrochemical added value products in Oman.

With this Liwa Plastics Project, the production of plastics will jump from the current 200,000 tonnes per year (t/y) to 1.4 million t/y by 2018.

This project is part of the Sultanate program to reduce its reliance on the export of crude oil and natural gas in developing its downstream industry to retain more added value in the country considering that each $ billion invested downstream is creating four times more jobs than the same $ billion spent upstream.

For now the existing Sohar refinery is treating 116,000 barrels per day (b/d) of crude oil with propylene output 40% too short to feed the current polypropylene unit next door.

With the Sohar Refinery Improvement Project ORPIC will increase the refinery capacity to 176,000 b/d in order to produce more transportation fuels and to increase the feedstock available for the Liwa Plastics project.

Liwa Plastics Project to adopt mixed steam cracker

While increasing the naphtha deliveries from the Sohar Refinery with the on-going Sohar Refinery Improvement Project, ORPIC decided to adopt the mixed steam cracker technology in order to also accept ethane, natural gas liquids (NGL), mixed liquid petroleum gas (LPG) and other condensate as feedstock.

In this perspective the Liwa Plastics Project includes three parts:

 – Upstream: Gas extraction plant located at Fahud

 – Midstream: 300 kilometers gas export pipeline from Fahud to Sohar

 – Downstream: Sohar Integrated Petrochemical Complex 

Located at Al Liwa where lies the Port of Sohar, the Sohar Petrochemical Complex will include:

 – Mixed Steam Cracker with 800,000 t/y capacity

 – High Density Polyethylene (HDPE) unit with 300,000 t/y capacity

 – Linear Low Density Polyethylene (LLDPE) unit with 500,000 t/y capacity

 – Polypropylene (PP) unit with 215,000 t/y capacity

 – Methyl Tertiary Butyl Ether (MTBE) unit with 40,000 t/y capacity

 – Butane-1 unit with 45,000 t/y capacity

Estimated to require $3.6 billion capital expenditure, the Liwa Plastics Project is now reaching the FEED stage since ORPIC initiated the tendering process.

ORPIC qualified only four bidders for the steam cracker

Focusing on the engineering companies providing their own license for the technology sensitive mixed steam cracker, ORPIC is only considering:

 – CB&I Lummus from USA

 – KBR from USA

 – Linde from Germany

 – Technip from France

On this base ORPIC is planning the FEED work to take 16 months until awarding the engineering, procurement and construction (EPC) contracts for the Liwa Plastics Project expected to run into commercial operations by 2018.

 For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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Takamul at FEED stage for Salalah Ammonia Project

The Omani Takamul Investment Company (Takamul) is moving forward in the downstream sector with petrochemical projects at Salalah in the south of the Sultanate and at Sohar in the north.

Acting as the chemical branch of the Oman Oil Company (OOC or Oman Oil), Takamul benefits also from the guidance of other shareholders such as:

 – Oman Oil 93.07%

 – Abu Dhabi Water & Electricity Authority (ADWEA) 5.01%

 – Al Maha Strategic Industries for Investments LLC 1.92%

With this support, Takamul is working on number of projects such as the Salalah Ammonia Project and the Sohar purified isophthalic acid (PIA) Project.

Through the Salalah Ammonia project, Oman Oil sees a double opportunity to develop the local economy in the south of Oman.

On the supply side, the Salalah Ammonia Project will contribute to monetize a part of the feedstock available from Salalah Methanol Company (Salalah Methanol).

On the demand side, the local production of ammonia will have a major effect on the Sultanate trading balance in reducing the import of nitrogen fertilizer.

In respect with Salalah Methanol capabilities of supply, the Takamul Ammonia project should be sized at world-scale with an investment of $700 capital expenditure.

Takamul is currently working on the front end engineering and design (FEED) of Salalah Ammonia Project to be located adjacent to the existing methanol facility.

Takamul is expecting to see the FEED work completed in 2015, in order to make the final investment decision (FID) in following.

ORPIC to join Takamul in Sohar PIA project

At the other side of the country the Oman Oil subsidiary is planning to invest in high added value petrochemical products with the Sohar PIA Project.

The purified isophthalic acid (PIA) is a critical building block required for the production of polyester.

Located in the north of the Sultanate, Sohar is attracting more and more industries consuming polyester for fibers applications, home furnishing and goods.

In addition Sohar is ideally located to export PIA to the other Gulf countries and in the north of India in competitive conditions.

Takamul competitive advantage relies on its access to cheap and abundant feedstock.

On the supply side, the PIA is produced out of an aromatic called metaxylene.

This metaxylene will be available from the Sohar refinery.

Operated by Oman Oil Refineries and Petroleum Industries Company (ORPIC), the Sohar Refinery is currently under revamping and upgrading project execution.

This expansion will give the opportunity to ORPIC to widen its portfolio of refined products with higher added value output such as the metaxylene.

As Takamul will be its unique client, ORPIC should join Oman Oil in the joint venture to operate this Sohar PIA Project.

With a capacity of 100,000 tonnes per year (t/y) of PIA, Takamul will become a key player of this market.

With the project currently at FEED stage, Takamul and its partners, Oman Oil and ORPIC, expect the Sohar PIA project to start first shipment in 2017.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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CB&I to complete ORPIC Liwa Plastics project FEED

The engineering company CB&I is about to complete the front end engineering and design (FEED) of the petrochemical complex planned by the state-owned Oman Refinery and Petroleum Industries Company (ORPIC) in Al-Liwa, near by Sohar in the north of Oman.

As all the other countries in the Gulf, the Sultanate is looking for building up added value locally in integrating more and more downstream transformations.

With the Liwa Plastics project, Oman is posting its intention to prepare ground for the development of the manufacturing industry.

To be connected to the Sohar refinery, the Liwa Plastics project will multiply the domestic production seven times to reach 1.4 million tonnes in 2018.

Budgeted to $3.6 billion capital expenditure, the Liwa Plastics project covers three main parts:

 – Fahud gas field production

 – 300 kilometers export pipeline to Sohar

 – Al-Liwa petrochemical complex

Benefiting from parallel supply in gas from Fahud and in naphtha from the Sohar refinery, ORPIC and CB&I selected a mixed steam cracker to produce ethylene, propylene, by-products and derivatives.

With a capacity of 800,000 tonnes per year (t/y) of ethylene, this mixed cracker will produce:

 – 300,000 t/y of high density polyethylene (HDPE)

 – 500,000 t/y of linear low density polyethylene (LLDPE)

 – 215,000 t/y of polypropylene

 – 40,000 t/y of methyl tertiary butyl ether (MTBE)

 – 45,000 t/y of Butane-1

ORPIC considers three options for Liwa Plastics EPC

ORPIC is currently working on the different scenari to organize the call for tender to sanction Liwa Plastics engineering, procurement and construction (EPC) contract.

The first option is to launch only one bid for the whole Liwa Plastics project EPC contract

The second option is break up the Liwa Plastics project in three EPC contracts for the:

 – Mixed steam cracker with offsites and utilities

 – Polyethylene and polypropylene units with offsites and utilities

 – Natural gas liquids (NGL) separation with offsites and utilities

The third option is considering six EPC packages covering:

 – Mixed steam cracker

 – Polyethylene units

 – Polypropylene unit

 – NGL separation

 – NGL pipeline

 – Offsites and utilities

In parallel to this evaluation, ORPIC is proceeding to the pre-qualification of the potential bidders for these different packages.

Depending on the potential bidders response ORPIC will select the best scenario to call for tender the Liwa Plastics project on early 2015 in expecting the first production by 2019.

 For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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