MUSCAT, March 26 State-owned Oman Oil Refineries
and Petroleum Industries Co (ORPIC) said it had awarded two
contracts for construction of a $3.6 billion plastics production
complex, the Liwa Plastics Project.
Engineers India Ltd of New Delhi will operate the
project management company, while the contract for front-end
engineering and design was won by Netherlands-based Chicago
Bridge & Iron Co, ORPIC said in a statement seen on
Wednesday without giving the value of the deals.
The plant will be built in Oman's northern industrial city
of Sohar, next to ORPIC's oil refinery and petrochemical plants.
Pre-qualifying of companies to bid for the engineering,
procurement and construction contract will be finished by the
end of this year, ORPIC said.
The Liwa Plastics Project is due to be completed in 2018,
doubling ORPIC's profitability by allowing it to extract more
value from Omani crude oil and natural gas, the company said.
The project will boost ORPIC's annual production of
polypropylene and polyethylene to 1.4 million tonnes, increasing
Oman's exports, while additional production of 1 million tonnes
of plastics will help to develop downstream industries within
the country, ORPIC added.
Oman is pouring billions of dollars into efforts to
industrialise its economy and create jobs.
A crackdown on corruption in the award of state contracts
during recent months has resulted in nearly 30 people being
sentenced to prison terms ranging from one to 23 years, raising
concern among some executives that business activity could slow.
However, ORPIC's award of the Liwa contracts suggests major
projects are progressing.
(Reporting by Fatma Alarami; Writing by Andrew Torchia)