Hyundai Engineering work on $600m oil and gas plant in Musandam begins

KHASAB (MUSANDAM): Oman Oil Company Exploration & Production (OOCEP) started work last December 5, 2011 on a green field oil and gas processing plant at Bukha in Musandam governorate. Once commissioned, the natural gas produced by the plant will feed a 120MW power plant coming up in Bukha.

The $600 million gas processing plant, built by Hyundai Engineering Co. Ltd, will get its feed stock from Bukha and West Bukha oil fields operated by RAK Petroleum.

"The total capacity of the gas plant will be 20,000 barrels of oil per day and 45 million cubic feet of treated gas. This project will also entail construction of 23km of subsea pipeline to bring products from West Bukha field to the plant, storage facilities for oil, a jetty for exporting oil and eventually, another four kilometers of export pipeline for the crude oil," Salim bin Zaher Al Sibani, chief executive officer of OOCEP, told visiting journalists, on the sidelines of the foundation stone laying ceremony here Monday 5^th December 2011.

The oil and gas processing plant, which is called Musandam Gas Plant, is expected to start operation in the fourth quarter of 2013. This will coincide with the completion of the proposed power plant.

Al Sibani said the processed gas is for building a power plant with an initial capacity of 120MW, which can be scaled up to 240MW. "It is in the design stage and tendering process has already started. We expect construction of the power project to start by early 2012, with the commissioning scheduled in the fourth quarter of 2013," noted the CEO.

Al Sibani expects that additional gas will be available for industries in Musandam.

"We are also planning to inter-connect the Musandam gas grid with the UAE through Ras Al Khaimah."

Currently, oil and natural gas produced from Bukha field goes to Khor Khawair processing plant in Ras Al Khaimah in the UAE.

The OOCEP chief also said that the West Bukha field currently produces only 20 million cubic feet of gas per day.

"However, we are expecting further development in the field as they are drilling additional wells."

This will result in supplying the required 45 million cubic feet. "The plant will initially cater to West Bukha field. However, it can take feedstock from new fields that are going to come up in Musandam."

Additional supply

He noted that the development of blocks 17 and 40, which are part of Musandam governorate, will help in additional supply of natural gas for the processing plant. "We understand that PetroTel will execute appraisal and exploration activities at block 17 by 2012."

The foundation stone laying ceremony was held under the auspices of Sayyed Khalifa bin Al Mudras bin Ahmed Al Busaidi, the governor of Musandam, and was attended by Choe Jonge hyun, South Korea's Ambassador to the Sultanate, and Sang-Rok Sung, senior executive vice president of Hyundai Engineering Co. Senior officials from OOCEP and Hyundai Engineering Co also attended the event.