Bidding is now under way for four EPC bid packages of the project
Orpic to raise $4bn for Liwa Plastics project
MUSCAT, August 10, 2015
Oman Refineries and Petroleum Industries Co (Orpic) is aiming to raise $4 billion for its Liwa Plastics Industries Complex, a report said.
Bidding is now under way for four Engineering, Procurement and Construction (EPC) bid packages of the project, added the Oman Observer report, noting that the complex consists of a polymers plant in Sohar industrial port, an NGL extraction plant in Fahud, a steam cracker plant, and a 300 km pipeline from Fahud to Sohar.
Orpic has received a positive response with five technical bids submitted for the polymers plant and three technical bids for the NGL extraction package. A number of bids are also expected on the steam cracker and pipeline packages by mid-August, the report said.
“It’s positive to see so many strong technical bids submitted from several notable proponents and JV partners. This project will be one of the largest in the region, and we expect to be making a significant impact on the local economy through EPC works alone,” Musab al Mahrouqi, CEO of Orpic, was quoted as saying in the report.
Orpic is on track to conclude evaluation of bids for all the packages early October, with final decisions by the end of the month.
“We are currently in discussion with eight export credit agencies regarding project due diligence, and the terms and conditions of financing this project, and we plan to launch requests for proposals to commercial banks over the coming month,” Al Mahrouqi added.
The project has already obtained environmental permits from the Ministry of Environment and Climate Affairs, and has been granted gas allocation, and is finalising the gas supply agreements, with the Ministry of Oil and Gas.
Land agreements with Sohar Port and Sohar Free Zone are scheduled for signing this month, with the land agreement for Fahud also scheduled for signing with the Ministry of Housing.
All technical and commercial terms and conditions for supply of utilities, such as electricity and cooling water, have been finalised with Majees and Majan, according to the report.
