Oman’s OLC, Spanish CLH sign USD320m contract

21 Dec 2014

(MENAFN) Orpic Logistics Company (OLC), a joint venture between Oman Oil Refineries and Petroleum Industries (Orpic), announced it has signed an engineering, procurement and construction (EPC) contract with the Spanish firm Compa””a Log”stica de Hidrocarburos (CLH) for the USD320 million, 280-km long Muscat Sohar Product Pipeline project (MSPP), Times of Oman reported.

CLH, an Oman-based GPS company, which has business activities spread across Gulf Cooperation Council (GCC) states, will be the lead contractor in the EPC contract, while being supported by Abantia, a Spanish construction company, which has experience in terminal construction, along with Diseprosa, an engineering company based in Spain.

The USD320 million-MSPP project, which will be a two-way multi-product pipeline, is going to be the first of its kind to be constructed in Oman and will eliminate the need for Orpic to ship and truck refined products, as well as reduce the number of fuel-tank truck journeys in and around Muscat, with the construction of the pipeline and oil tanks facility scheduled to begin in the first quarter of 2015 and the project is due to be commissioned in the second quarter of 2017.

“The construction of will start “The MSPP project is actually of paramount importance to the Sultanate as it will help satisfying the growing domestic demand for fuels which is seven per cent per annum, it will guarantee a timely availability of products without shortage and after its commissioning 50 per cent of the country’s demand will be met from the new storage facility of the project,” Chairman of OLC said.

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