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Oman's Galfar wins $2m pipeline contract from India's Punj Lloyd

Muscat-listed contractor to deliver three-month deal on subcontract basis for Omani energy megaproject

Galfar has won a subcontract from India's Punj Lloyd for work in Oman [representational image].
© Pixabay / Bhumann34
Galfar has won a subcontract from India's Punj Lloyd for work in Oman [representational image].

Oman construction contractor Galfar Engineering & Contracting has been picked to work on a pipeline project by India-headquartered Punj Lloyd.

In a missive issued to Muscat Securities Market, Galfar said its subcontract is valued at $1.9m (OMR753,000), and covers the erection and installation of 36.5cm of piping for the Fahud-Sohar pipeline’s natural gas liquid (NGL) component.

Galfar’s statement, signed on behalf of chief executive officer, Dr Hans Erlings, added that the contractor had received its letter of award from Punj Lloyd Ltd Oman on 3 February, 2019, and accepted it on 6 February.

Completion is due on the Punj Lloyd-led project within three months from the award letter’s date.

Punj Lloyd, listed on National Stock Exchange of India (NSE), is an engineering, procurement, and construction contracting specialist that has implemented noteworthy schemes in the Middle East.

Among these is Kuwait National Petroleum Co’s expansion and revamp of Ahmadi Depot, which aims to raise the facility’s storage capacity by four times; and an offshore contract worth $57.75m from Al-Khafji Joint Operations, a joint firm of Saudi Arabia’s Aramco Gulf Operations Co and Kuwaiti Gulf Oil Co. The latter contract win, announced in March 2013, was Punj Lloyd’s first offshore project in the Middle East.

In its 2017-18 annual report, Punj Lloyd said that the Fahud-Sohar pipeline is being built as part of a wider contract it had won from Oman Oil Refineries and Petroleum Industries Co (Orpic) and Oman Gas Co (OGC). The deal’s scope includes the construction of a 35.6cm NGL pipeline that spans 300km, in addition to an 81cm gas pipeline that is 301km long.

The former is part of Orpic’s $6.4bn Liwa Plastic Industries Complex, and will travel from the New Fahud NGL plant to the Steam Cracker Unit scheme in Sohar. Meanwhile, the 81cm gas pipeline is being built for OGC, and runs parallel to an existing Fahud-Sohar pipeline of the same length. Punj Lloyd said in its annual report that the pipeline was “being laid to supply gas for [the] North Power station”. 

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