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Oman Oil invites bids for $500m plant & pipeline

Processing plant contract attracting interest from major contractors

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The Oman Oil Company (OOC) is to invite bids for an engineering, procurement and construction (EPC) contract, worth between $300 million and $500 million, for the construction of an oil & gas pipeline and processing plant in the country.

Businesses intelligence service MEED reported that at least four international contractors will be invited to bid for the work, which is to be carried out at Musandam in northern Oman.  

The contract will involve the construction of a processing plant in Musandam which will be connected to the offshore West Bukha field, off the Strait of Hormuz via a 1 kilometre long pipeline.

"The civil works part of the deal could end up being quite costly because of the rough terrain in the area. Oman Oil has told us that this part is optional but either way it could push up the cost of the project," MEED reported one unnamed source as saying. 

Once completed the plant will process 20,000 barrels per day of oil and 45 million cubic feet per day of gas.

Technical bids on the EPC contract need to be submitted to OOC by August 29.

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