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Omani/Spanish JV inks deal for $320mn pipeline

Orpic Logistics Company to be lead contractor for Muscat Sohar Product Pipeline project

NEWS, Compañía Logística de Hidrocarburos, Deal, Jv, Oman, Oman Oil Refineries and Petroleum Industries Compa, Pipeline

A joint venture (JV) between Oman Oil Refineries and Petroleum Industries Co (Orpic) and Spanish firm Compañía Logística de Hidrocarburos (CLH) has signed an engineering, procurement and construction (EPC) contract for the construction of a $320mn (OMR 123.2mn) pipeline project in the sultanate.

The Orpic Logistics Company (OLC) JV will be the lead contractor for the Muscat Sohar Product Pipeline project (MSPP), which also involves the construction of an oil tanks facility.

Musab al Mahruqi, chairman of OLC, and Salvador Guillen, a board member of OLC, signed the contract – along with a financing agreement for the project – on behalf of the JV.

Speaking at the signing ceremony Musab al Mahruqi said: “The MSPP project is actually of paramount importance to the sultanate as it will help satisfy the growing domestic demand for fuels which is 7% per annum. It will guarantee a timely availability of products without shortage, and after its commissioning 50% of the country’s demand will be met from the new storage facility of the project.”

He added: “The project will provide a highly safe and environmental friendly transportation of petroleum products across the country; it will also help in saving energy with very minimum fuel loss, and it will reduce truck traffic especially around Muscat.”

OLC will be supported by Abantia, a Spanish construction company, which is experienced in terminal construction, and Diseprosa, an engineering company based in Spain.

Work will start in the first quarter of 2015 and the project is due to be commissioned in the second quarter of 2017.

The MSPP Project will be a two-way multi-product pipeline, the first of its kind to be constructed in Oman.

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