Petroleum Development Oman (PDO) has awarded the main contract for a project to build a facility to handle additional oil production from the Al-Ghubar field in the sultanate.

The Al-Ghubar field is located in the Ghaba Salt Basin at Qarn Alam, within majority state-owned PDO’s Block 6 concession area.

The Al-Ghubar gas-oil gravity drainage (GOGD) facility will be designed as a sour (hydrogen sulphide) facility and is expected to handle a maximum oil production rate of 1,800 standard cubic metres a day (cm/d), a total water flow rate of up to 10,421 standard cm/d and gas lift of up to 256,934 standard cm/d. Production from the planned Al-Ghubar GOGD facility will be exported to PDO’s main oil line.

China-based Jereh Group has won the contract for the Al-Ghubar GOGD facility project, sources told MEED.

A project kick-off meeting between PDO and Jereh has also recently taken place, the sources said.

It's previously reported that Jereh had emerged as the lowest bidder for the project.

The following contractors, among others, are understood to have been bidding for the Al-Ghubar GOGD facility project:

Engineering for the Petroleum & Process Industries (Egypt) / Petrojet (Egypt) GS Engineering & Construction (South Korea) Jereh (China) Larsen & Toubro Energy Hydrocarbon (India)

PDO floated the tender for the Al-Ghubar GOGD facility project in March, setting an initial bid submission deadline of 4 May.

PDO later extended the deadlines for the submission of technical and commercial bids to 26 July and 7 August, respectively. Contractors submitted technical proposals by the revised deadline, according to sources.

After receiving the technical bids for the project in July, PDO granted contractors until 16 August to submit commercial bids. It eventually extended the deadline to 1 September, with contractors submitting commercial proposals by that date.

The scope of work on the Al-Ghubar GOGD project covers the engineering, procurement and construction (EPC) of the following:

On-plot scope, consisting of:Production separatorTest separatorConcentric wash tank Wet oil pump Water bath heater Surge tank Gas injection/gas lift compressor (centrifugal) Utilities (instrument air compressors, chemical injection skids, drain system, vent system)Suction scrubber Air coolers Discharge scrubbers Condensate flash drum Atmospheric pressure knock-out drumFlare system Gas heater Water disposal pump Oil shipping pump 132kV substation and plant substation (housing 6.6kV and 415-Volt switchboard) Control room
Off-plot scope consisting of:Off-plot pipeline network (bulk header, test header, gathering infrastructure/ gathering line header, instrument air header, water disposal header) Two remote manifold stationsTie-in connection to main oil line Tie-in to gas network pipeline

PDO previously intended to tender the Al-Ghubar GOGD project under its framework structure with selected EPC contractors, but ultimately tendered it separately.

PDO is the operator of Oman’s Block 6 hydrocarbons concession, the sultanate’s largest and most prolific concession. Situated onshore and covering an area of 75,119 square kilometres, Block 6 contains 202 oil fields and 43 gas fields. PDO produces approximately 680,000 barrels a day of oil and condensates from the fields.

The Omani government holds a 60% stake in PDO through Energy Development Oman. The other shareholders are UK-based Shell (34%), France’s TotalEnergies (4%) and Thailand’s state-owned PTTEP (2%).