Orpic (Oman Oil Refineries and Petroleum Industries Company) had named Tecnimont, JV GS Engineering & Construction Corp. / Mitsui & Co. Ltd and Punj Loyd as the preferred bidders for three of four packages for its Liwa Plastics Industries Complex (LPIC) project.
The three packages include the Natural Gas Extraction Unit in Fahud, the NGL pipeline between Fahud and Sohar and the three plastics plants in Sohar. Orpic intends to sign the final Engineering Procurement & Construction “EPC” contracts after finalizing the agreements and receiving Final Investment Decision on the project but before year end. In the coming days, Orpic will be announcing the preferred bidder for the largest package (Package 1) which includes the steamcracker and associated utilities in Sohar.
The USD 5.2 bn project will transform LPIC’s presence in the international petrochemicals marketplace as well as support the development of a downstream plastics industry in the Sultanate. It will also create new business opportunities, and generate significant employment opportunities.
11 strong bidders submitted financial tenders for the 3 considered packages and after a thorough evaluation process the preferred bidders were presented to Orpic’s Major Tender Board. The Tender Board studied the detailed bids and subsequently approved the names of preferred bidders. In the next 2 weeks, a detailed discussion will be held with the preferred bidders in order to finalize the contracts. The final package for the steam cracker will be announced soon.
Musab Al Mahruqi, CEO, Orpic, stated, “We are very pleased to receive such high calibre financial tenders for EPC works on this regionally significant project.  LPIC will have a substantial flow on effect on the national economy, and we are looking forward to partnering with leading proponents to deliver a best in-class result.”
He further added, “Following commissioning, plastics production is forecast to have increased by more than 1mn tonnes; giving Orpic a total of 1.4mn tonnes of polyethylene and polypropylene production. The operation will be one of the best integrated refinery and petrochemical facility combinations in the world and will be able to achieve the maximum value add for Oman’s hydrocarbon molecule.”
All relevant environmental permits have been obtained from the Ministry of Environment & Climate Affairs, and all technical and commercial terms & conditions for supply of utilities, such as electricity and cool water, have been finalized with Majees and Majan. Gas Supply Agreements, are being finalized with the Ministry of Finance and Oil & Gas.
Land agreements with Sohar industrial Port Company, Sohar Free Zone and Fahud are scheduled for signing with the Ministry of Housing.