oman's key industries

7/27/2019 Oman's Key Industries

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OMANS KEY

INDUSTRIES

Though the Government is making all-out efforts to reduce the

dependence of Omans economy on the oil income, the country still

remains an oil-based economy. The Government has accelerated its

efforts and intensive industrialisation process is on in recent years.


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PETROLEUM DEVELOPMENT OMAN

Petroleum Development Oman (PDO) is the foremost

exploration and production company in the Sultanate. It

accounts for more than 70 per cent of the countrys crude-

oil production and nearly all of its natural-gas supply. It is a

limited liability company jointly owned by the Government

of Oman (60 per cent), Royal Dutch Shell (34 per cent),Total (four per cent) and Partex (two per cent).

PDO nds oil elds and develops them into productiveassets by drilling wells and constructing and operating

various hydrocarbon treatment and transport facilities. The

crude produced from the elds is delivered to a storagefacility at Mina al Fahal, where it is loaded on to oil tankers.

The rst economic nd of oil in Oman was made in 1962,and the rst export of Omani oil took place on 27 July 1967.The consignment consisted of 543,800 barrels of oil valued

at $1.42 a barrel. Due to new sources of oil, productionaveraged to 341,000 barrels per day in 1975. In the early1980s, production rose to new levels. By the end of 1984,average daily production had risen to 400,000 barrels a

day and reserves stood at 3.8 billion barrels.

By the end of 2000, PDO witnessed an increase in production.This was due to the increase in production from the

application of the latest technology to increase oil recovery in

existing elds. And some of the production increase over the

years was made up of new oil from elds that were not only

found but also developed at a faster pace. During the period1967-1980, all of PDOs production came from 11 elds; by

1988, 50 elds provided the sum total of PDOs oil output;by 1990 it was 60, and in 1999 it was nearly 100. As of todayPDO produces more than 800,000 barrels of crude per day.

In 1996, PDO concluded an agreement with the Governmentto develop the central Oman gas elds in order to supplygas to an LNG plant in Qalhat, near Sur. This upstream LNG

project, costing $1.2 billion, is the single biggest project inPDOs history. The Saih Rawl Central Processing Plant and

the gas pipeline from Saih Rawl to Qalhat were dedicated

to the nation in November 1999, the rst downstreamcargo of LNG was shipped to Korea in April of 2000, andHis Majesty the Sultan ofcially opened the LNG plant sixmonths later.

OMANSKEYIN

DUSTRIES


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OMAN LNG LLC

Oman LNG LLC is the largest public/private joint venture in

the Sultanate of Oman. Natural Gas is also the largest revenue

contributor after oil to the Government of Oman and its people.

Oman LNG is engaged in the production and sale of LNG

(liqueed natural gas) and natural gas liquids. It undertakesactivities to liquefy, store, transport and market Omans natural

gas and delivering LNG to international customers.

It is a joint venture between the Government of the Sultanate

of Oman, Royal Dutch and Shell Group, Total, KOLNG,

Partex, Mitsubishi, Mitsui and Itochu. Oman LNG produces

gas from Barik, Saih Nihayda and Saih Rawl gas elds and

transport to a gathering plant at Saih Rowl in the central

Oman gas eld, operated under the name of the Government

of Oman by Petroleum Development Oman (PDO). It has a

gas pipeline of 360 kilometres which is also operated by

PDO. It was incorporated in 1994 with headquarters at Mina

Al Fahal in Muscat.

The Company operates three liquefaction trains at its site

in Qalhat, near Sur, in the Sharqiyah region two owned by

Oman LNG LLC and one owned by Qalhat LNG SAOC. The

plant has capacity to liquefy 10.4 million tonnes per annum.

The entire production is sold off by separate long term

agreements to Korea Gas Corporation, Osaka Gas of

Japan, Itochu Corporation (Japan) and Oman Reneries and

Petroleum Company. The agreements are valid until 2025.


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SOHAR ALUMINIUM

The newest addition to the Middle Easts metals circuit and Omans

rst foray into the Aluminium industry, Sohar Aluminium has been

breaking records since its inception.

By implementing decades of industry insight in its design, specicationand construction, Sohar Aluminium has been created to ensure

efciency, environmental protection and the utmost safety of its

workforce. Noteworthy examples include the worlds longest single

potline, the worlds highest known capacity ingot casters and innovative

elevated walkways traversing the entire site to keep man and machine

separate except when absolutely necessary.

In many ways, Sohar Aluminiums development mirrors the Sultanate

of Omans own emergence onto the world stage driving forward at a

formidable pace, but all the while mindful and respectful of its cultural

heritage and values. Sohar Aluminium intends to become a benchmark

smelter while contributing to the sustainable development of Oman.

Sohar Aluminium is a joint venture between Oman Oil (40 per cent),

Abu Dhabi National Energy Company PJSC TAQA (a subsidiary of

Abu Dhabi Water and Electricity Authority) (40 per cent) and Rio Tinto

Alcan (20 per cent).

Oman Oil Company is commercial entity owned in its entirety by the

Government of Oman that actively pursues investment opportunities

in the energy sector, both in Oman and abroad. TAQA was founded in2005 with the objective of becoming a global leader in the energy sector.

TAQA is 51 per cent owned by Abu Dhabi Water and Electricity Authority(ADWEA) and has a workforce of 2,800 drawn from 41 nationalitiesworking in 13 markets across the world.

Rio Tinto Alcan is the Aluminium division of the multinational Rio TintoMining and Metals Group and also the proprietors of Sohar Aluminiumsbenchmark AP36 smelting technology.

Ranked as the worlds most modern smelter with its own 1,000 MWpower station, Sohar Aluminium attributes the achievement of thismajor production milestone to its strategic focus on maximising

operating efciencies, continuous improvement and the dedication ofits employees.

Sohar Aluminium was formed in September 2004 to undertake a landmarkGreeneld aluminium smelter project in the Sultanate of Oman. It reached

full capacity on 19 February 2009 and merely 30 months later celebratedits one millionth ton production. Production capacity was also upgraded

from 350,000 tons per year to 375,000 tonnes per year.

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OMAN REFINERIES AND PETROLEUM

INDUSTRIES COMPANY (ORPIC)

Created from the integration of three companies

Oman Reneries and Petrochemicals Company

LLC (ORPC), Aromatics Oman LLC (AOL) and Oman

Polypropylene (OPP) ORPIC is one of Omans

largest companies and is one of the rapidly growing

businesses in the Middle Easts oil industry.

The reneries at Sohar and Muscat (Sohar Renery

and Oman Renery), as well as the aromatics

and polypropylene production plants in the Sohar

complex, provide fuels, chemicals and feedstock to

Oman and to the world.

ORPIC has a team of more than 1,600 employees

the majority Omanis working across the four plants

with the common goal of building an integrated Omani

rening and petrochemicals business which the nation

is proud of.

ORPIC is owned by the Government of the Sultanate

of Oman and by Oman Oil Company SAOC, the

commercial company wholly owned by the Government

of the Sultanate of Oman created to pursue investmentopportunities in the energy sector, both inside and

outside Oman.

ORPICs integrated complex includes four industrial

plants operating at two locations, in Muscat and

Sohar. The two locations are joined by a 266 kilometre

pipeline, delivering feedstock from Mina Al Fahal

Renery to the Sohar plants.

The plants take raw materials, the main one being

Omani crude oil, and process them to create a seriesof important fuels and petrochemicals. Omani crude

is processed in Mina Al Fahal into fuel products.

In addition, the long residue from this renery is

transferred via the pipeline to Sohar Renery where,

mixed with more Omani crude, it is rened to create

fuels, naphtha and propylene.

The naphtha is taken by the Aromatics Plant to create

benzene and paraxylene, industrial chemicals used in

the production of plastics.

The propylene is taken by the Polypropylene Plant.

Polypropylene is a widely-used thermoplastic polymer,

which forms the basis of many different products

everything from packaging to carpets to banknotes.

Together, the four plants have a production capacity of222,000 barrels per day of naphtha, liquid petroleum

gas (LPG), gas oil, gasoline, fuel oil and jet oil; 818,000

metric tonnes per annum of paraxylene and 198,000

metric tonnes of benzene; and 350,000 metric tonnes

of polypropylene.

Aromatics Oman LLC (AOL) is a company established

to construct and own a petrochemical complex and

is owned by Oman Oil Company (OOC 79%), Oman

Renery & Petrochemical Company (ORPC 20%) and

LG International Corporation (LGI-1%).

The Aromatics Complex is a part of the development of a

number of renery based complexes at the Sohar Industrial

Port Area, Sohar on the north east coast of Oman.

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AROMATICS OMAN LLC (AOL)

Aromatics Oman LLC is jointly owned by Oman

Oil Company, Oman Renery Company, and LG

International. Oman Oil Company is the majority

shareholder. The plant is located in the Sohar Industrial

Port City.

The project is launched at a cost of US $1.6bn and

the Engineering, Procurement and Construction(EPC) Contract was executed by LG International

Corporation and GS Engineering Construction

Corporation of Korea under Technology Licence from

Axens.

Aromatics Oman started its commercial production

on 4 February 2010, after successful completion of

all the performance guarantee test runs. The main

feedstock for the Aromatics Complex is Straight Run

Naphtha with 28 per cent of requirement coming

from next door ORPCs Sohar Renery and balance

72 per cent from import. The plant feedstock

processing capacity is 1.820 million tons per year.

Aromatics Oman LLC has the capacity to produce 1.0

million tons per year of Aromatics with main products

Para Xylene 817,413 tons per year and Benzene

198,441 tons per year. Para Xylene and Benzene

are important raw materials for a wide range of

petrochemical intermediaries and are used to produce

a variety of consumer goods.

Para Xylene is primarily used as a basic raw material

in the manufacture of Puried Terephthalic acid (PTA)

and Di-Methyl-Terephthalate (DMT). The PTA and DMTare used to manufacture Poly-Ethylene Terephthalate

(PET) and a variety of Polyesters and Polymers.

Polyesters are used to produce yarn, bres and lms.

PET bottles are widely used for carbonated beverages

because of good carbon dioxide barrier properties. In

addition, they are light-weight, shatter-resistant and

possess high tensile strength.

Benzene is a key basic chemical for the manufacture

of wide range intermediate products, including Cyclo-

Hexane that makes Nylon. Benzene is also used to

make Ethyl Benzene Styrene Monomer which is used

to manufacture Poly Styrene and Rubber products.

Benzene can also be used to make Cumene and Phenol

which are used in healthcare products. Benzene is a

basic raw material for Linear Alkyl Benzene which is

used to manufacture soaps and detergents.


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OMAN OIL COMPANY SAOC

Oman Oil Company SAOC is a closed shareholding company whollyowned by the Government of the Sultanate of Oman. The Company

was incorporated in 1996 to pursue investment opportunities

in the energy sector, both inside and outside Oman. Originally

headquartered in Bermuda, it was later on shifted to the Sultanate

for more focussed operations. Through participation in energy

and energy related projects, the Company plays an important role

in the Sultanates efforts to diversify the Omani economy and to

promote Omani and foreign private sector investments.

The main objectives of the Company are:

Contributing to the diversication of the Omani economy

Facilitating foreign and private sector investments in Oman

Generating revenue for the Government

Creating jobs and providing job training

Within Oman, the Company is focused on the development ofoil and gas-based industries and other energy related projects

in partnership with global industry players. The Companys

investment portfolio includes Exploration & Production and

related services, Infrastructure & Shipping, Rening & Marketing,

Petrochemicals, Aluminium and Power.

The Companys signicant experience in project development

and its unique shareholding as a government owned commercially

managed company makes it a partner of choice in the energy

sector in Oman.

Outside Oman, the Company is actively pursuing commercial

ventures in the energy value chain to provide an alternate source

of revenue for the Government of Oman.


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OMAN DRYDOCK CO.

Oman Drydock Company S.A.O.C. (ODC) was established in

September 2006 by the Government of Sultanate Oman with its

100 per cent stake under the Master Plan of Duqm area which is

propelled to diversify Omans industrial growth.

ODC is being operated by Daewoo Shipbuilding & MarineEngineering Co., Ltd (DSME) of South Korea, the leading shipbuilder

in the world. DSME has entered into an Operating and Management

(O&M) Contract with the Government in September 2006 for a

period of 10 years, extendable for another 10 years. By utilisingDSMEs well-organised, experienced and proven technology, and

geographical advantages, ODC will have a bright future of revenue

of about U$ 210 million and 3,500 employees by 2020.

The construction work of the shipyard in Duqm is already completed

and it is ready for commercial launch. Ship repair activity has already

commenced and the Dock has by now undertaken repair of more

than 12 ships of different sizes.

The Government has planned to establish the dry dock at Duqm as

a development programme of the Al Wusta region. According to

Vision 2020, which is a long-term economic development plan inOman, the Government aims to balance its economic development

all over the country and to diversify its industry structure by investing

in non-petroleum industries. The Government has, therefore, decided

to build a new town, including a dry dock, free zone, an airport and a

seaport facility at the Al Wusta region and expects that the population

in the region would increase up to 100,000 by 2020.

The ship repair yard, one of the biggest ship repair yards in the world,

is equipped to handle some of the largest vessels in service today,

including Ultra-Large Crude Carriers (ULCCs) of up to 600,000 dead-

weight ton (DWT) capacity.

The Duqm dry dock will provide direct employment to around 1,500

people, and the workforce is projected to rise to over 3,000 by 2020.

Thousands of indirect jobs would also be created.

oman's key industries

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