Gulf Oil and Gas accountACCOUNT

Work on Sohar Refinery Begins

Source: www.gulfoilandgas.com 10/26/2003, Location: Middle East

SOHAR - Japan’s JGC Corporation yesterday began work on the Sohar Refinery project being set up at a cost of about $1 billion.

Dr. Mohammed bin Hamad Al Rumhy, Minister of Oil and Gas, said the refinery, which will be completed in the third quarter of 2006, is a major industrial project being implemented on the Sohar Industrial Estate. He said the refinery would provide refined oil products for excess local requirements. The minister said the refinery would boost Sohar Industrial Port activities, create a heavy industrial base in the Sultanate, diversify income and support existing oil and gas-based industries. He added that 90 per cent of the refinery output would be exported through a refined product 10-year off-take agreement with BP.

Rumhy said the refinery will help generate employment opportunities for citizens and its management in cooperation with LG Caltex will develop a training strategy to ensure adequately qualified Omanis are employed from the beginning of the operation phase. He added Omani citizens would also play a prominent role during the 34-month construction period.

He said the refinery is fully owned by the government. It will have a crude unit with a capacity of 116,400 barrels per day and a residue fluid catalytic cracking unit (RFCCU) with a capacity of 75,260 barrels per day.

The Minister said Sohar Refinery, the second such facility in the Sultanate, will operate at full capacity to maximise propylene production of approximately 327,000 metric tonnes per year. He added this quantity would be sufficient to serve as feedstock for a polypropylene project planned in Sohar.


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