Agreement on construction of crude oil pipeline to Omani refinery signed
An agreement worth RO 34 million covering construction of a crude oil pipeline that runs from Mina Al-Fahl to Sohar Refinery was signed at the Omani Ministry of Oil and Gas today.
The engineering, procurement and construction (EPC) contract of the Mina Al-Fahl - Sohar pipeline project costs RO 34,064,500 and was concluded between Oman Oil Refinery Company LLC and Saipem /CCC joint venture.
According to ONA, Nassir bin Khamis al-Gashmi, Undersecretary of Oil and Gas Ministry and Board Chairman, signed the deal on behalf of ORC, while the branch manager signed for Saipem and the area general manager for the CCC.
The Oil and Gas Undersecretary said ORC has decided to invest around RO 45 million ($119 million) in this project and other associated utilities to provide Sohar Refinery with sustained feedstock of crude oil when commissioned in 2006.
He added the new crude oil pipeline will start in ORC area at Mina Al-Fahl (MAF) and end at SRC location at Sohar port area. The estimated pipeline length is 266 km, which makes it one of the biggest of its kind in the Sultanate.
The Undersecretary said the project will be completed in 81 weeks including pre-commissioning and commissioning activities". He explained that although the new 24-inch pipeline will be constructed with an initial capacity of 116,000 barrel per day of mixed crude oil and long residue (LR), the capacity will be increased in the future to accommodate 160,000 barrel per day. (menareport.com)
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