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Fuelling Musandam’s growth
Oman Oil Company Exploration and
Production (OOCEP) has initiated the construction of a $600mn
hydrocarbon project with a production capacity of 45 million
cubic feet of treated gas and 20,000 barrels of oil per day in
Bukha, Musandam. Muhammed Nafie reports
Musandam, Oman’s strategically important exclave overlooking the
Strait of Hormuz, is all set to host a major $600mn oil and gas
processing plant with huge potential to spur economic growth in
the peninsula. Operated by Oman Oil Company Exploration and
Production (OOCEP), the upstream subsidiary of Oman Oil Company,
and situated in the Wilayat of Bukha, the Musandam Gas plant (MGP)
will be part of a major integrated development project
comprising the West Bukha field development, an offshore
production pipeline, and crude storage and export facilities.
Expected to start operation in the fourth quarter of 2013, the
plant will produce the natural gas to feed Oman’s first
gas-based Independent Power Project coming up in Bukha. The
plant is also expected to help the Sultanate set up a new oil
export terminal on its north coast. The formal construction of
the green field plant started recently with a foundation-laying
ceremony in Bukha, organised by OOCEP and Hyundai Engineering
Company, the prime contractor to build the project. Sayyid
Khalifa bin Almurdas bin Ahmed al Busaidi, Governor of Musandam,
presided over the ceremony which was attended by Ahmed al
Wahaibi, CEO of Oman Oil Company, and Salim al Sibani, CEO of
OOCEP, Sang-Rok Sung, Senior Executive Vice-President, Hyundai
Engineering Co Ltd and South Korean Ambassador Choe Jong-hyun
among other dignitaries.
Says Salim bin Zaher Al Sibani, CEO of OOCEP, “This is a very
significant project for Oman and Musandam Governorate. The
Musandam Gas Plant is part of a major integrated development
comprising the West Bukha field development, offshore production
pipeline, crude storage, and export facilities. The gas will be
used to feed a future power plant to provide reliable
electricity for Musandam. Further, the project will act as a
foundation for additional oil and gas developments in the
region.”
According to Sang-Rok Sung, senior executive vice-president of
Hyundai Engineering Co, “This is an important deal for Hyundai
Engineering, as it returns to Musandam province with local
supporting services and spreads the reputation of HEC’s oil and
gas project in the Sultanate.”
Integrated project
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.
The plant will get its feed stock from Bukha and West Bukha oil
fields operated by RAK Petroleum. At present, the Sultanate has
two offshore fields adjacent to the Musandam peninsula. These
fields, Bukha and West Bukha, are operated by RAK petroleum. The
Bukha field has been operating since 1994 and West Bukha since
2008. The production is currently commingled on the Bukha
platform and transported via subsea pipeline to the Khor Khawair
Processing Plant in Ras Al Khaimah in the UAE.
Salim also noted the initial production of gas from the plant
will be earmarked for power generation and the additional supply
will be used for industries. “In the event of gas being
available more than Musandam’s requirements, we are
interconnecting between the Oman gas grid, the new Musandam grid
and the UAE grid via Ras al Khaimah. So there will be a gas
interlink between Oman and the UAE via this project.”He also
said that the development of blocks 17 and 40, which are part of
Musandam governorate, would help in additional supply of natural
gas for the processing plant. PetroTel is expected to execute
appraisal and exploration activities at block 17 by 2012,
Salim informed.
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