OMAN: Orpic preparing Liwa bidding process; mulling project contracting strategy

The USD 3.6-billion project, being built adjacent to Orpic's Sohar refinery in Oman, includes an 800,000-t/y ethylene cracker, a 420,000-t/y high-density polyethylene (PE) plant, a 420,000-t/y linear low-density PE facility and a 215,000 polypropylene (PP) plant. The project is also expected to include a natural gas liquids (NGL) extraction unit in Fahud that will be connected to Sohar via pipeline.

Orpic is considering three different contracting options.

The first option is to award the entire engineering, procurement and construction (EPC) package as a single lump sum turnkey contract.

Option two is to tender the project as three main EPC contracts--the steam cracker with offsite works and utilities; PE and PP units with offsites and utilitites, and NGL extraction unit with offsites and utilities.

The third option is six main EPC contracts--steam cracker; PE unit; PP unit; NGL extraction unit; NGL pipeline, and offsite works and utilities.

A decision on the contracting strategy will be made before bids are invited. The pre-qualification of contractors is expected to begin in July, with the EPC tender due to be floated in January 2015.

Source: Weekly "PetroChemical News", Durham, NC, USA; 30 June 2014
(Syed Rashid Ali, Karachi, Pakistan)