Page 6 - MEOG Week 37 2021
P. 6

MEOG                                   PIPELINES & TRANSPORT                                           MEOG


       OQ awards pipeline




       deal to Galfar




        OMAN             OMAN’S state-owned OQ this week awarded a  the exclusive operator and owner of Oman’s gas
                         $104mn contract to local firm Galfar Engineer-  transportation system and has the exclusive con-
                         ing & Construction for the construction of a gas  cession to own and operate a system of pipelines,
                         pipeline in the Sultanate.           metering, compressor and gas supply stations.
                           In a disclosure to the Muscat Stock Exchange,   Production is sourced from Blocks 60 and 61
                         Galfar CEO Dr Hamoud al Tobi said: “We are  and sold to 59 connected government-owned
                         pleased to inform our esteemed shareholders  industrial facilities mainly located in around
                         that Galfar signed a contract with OQ Group for  Sohar, Muscat, Sur, Mukhaizna and Salalah,
                         an engineering, procurement and construction  including refineries, petrochemical plants,
                         (EPC) project for Central 48-inch [1,219-mm]  power plants, desalination plants, fertiliser
                         Rich and Lean Gas Pipeline Segregation Project  plants, cement plants and manufacturing
                         at the OQ Group’s concession area.”  facilities.
                           According to its prospectus for a $2bn medi-  The gas agreements for both blocks include a
                         um-term note, OQ has participating interests in  fixed escalating price for supplies.
                         four producing blocks, one non-producing block   The reference price for Block 60 commenced
                         and five exploration blocks both onshore and off-  in 2011 at $2.50-2.80 per million Btu, escalating
                         shore Oman.                          at 2% per annum, while that for Block 61 started
                           Tobi said that the contract would be carried  in 2014 at $3.30 per mmBtu and escalates at the
                         out over a period of 42 months, adding that the  same rate.
                         deal would “contribute to the company’s reve-  Galfar won a $28mn deal from another
                         nues and further strengthen our presence in oil  OQ subsidiary, OQ Exploration & Production
                         and gas and high-capacity pipeline projects”.  (OQEP), for the construction of pipelines across
                           OQ subsidiary OQ Gas Network (OQGN) is  the firm’s upstream concessions.™



















































       P6                                       www. NEWSBASE .com                      Week 37   15•September•2021
   1   2   3   4   5   6   7   8   9   10   11