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PDO Awards Gas Compression EPC Contract

Source: 12/20/2009, Location: Middle East

Petroleum Development Oman (PDO) announces that it has awarded an engineering, construction and procurement (EPC) contract for the Saih Nihayda gas compression project to South Korea’s GS Engineering and Construction. The award also includes the de-bottlenecking of the Saih Nihayda gas processing plant.

“This is an important project which aims to ensure that the Saih Nihayda field produces gas at an optimum level for a maximum amount of time,” commented Deputy Managing Director Abdulla al Lamki.

The Saih Nihayda field in Central Oman has been producing gas since it was commissioned in early 2005. Gas from the field is treated at the Saih Nihayda Processing Plant from where it enters the government gas grid. Based on current demand patterns, reservoir pressure is expected to start declining within the next six years. The installation of the new compression facilities will enable PDO to maintain pressure for several years. The de-bottlenecking of the processing plant will increase capacity from the current level of 20 million cubic metres a day (m3/day) to 25mn m3/day.

Front-end engineering and design (FEED) for the Saih Nihayda compression and debottlenecking project was undertaken by PDO’s FEED Office. This is the first PDO project designed internally by the recently-created FEED Office.

The award follows a competitive bidding process in which seven international companies participated. PDO produces gas on behalf of the Government of Oman which owns all the gas in PDO’s concession area.

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