Oilfield service provider Petrofac was awarded a $600 million contract to develop the Salalah liquefied petroleum gas (LPG) project in Oman, the company announced on Monday.
Petrofac signed the three year contract with a subsidiary of the state-owned Oman Oil Facilities Development Company.
Under the terms of the agreement, Petrofac will carry out the engineering, procurement and construction of the Salalah LNG extraction project in the southern part of Oman, the company said.
"Petrofac’s scope of work will include construction of the LPG unit and associated facilities, including tie-ins to existing pipeline infrastructure, together with LPG storage and jetty facilities at the Port of Salalah," the company said.
Oman conceptualized the Salalah LPG extraction project in the southern part of Oman in 2012.
The project is expected to be constructed by 2018 and start production in 2019.
Once operational, 10 percent of production is planned to be used locally, while 90 percent will be exported.
By Zeynep Beyza Kilic
Anadolu Agency
zeynep.karabay@aa.com.tr