Work on PDO’s Yibal Khuff mega project gathers momentum

COMPLEX VENTURE: Project 40 pc complete as of June and progressing on schedule

Construction work on the Yibal Khuff mega project of Petroleum Development Oman (PDO) is now well past the 40 per cent mark, according to UK-based Petrofac, the main engineering contractor engaged by the majority government-owned national oil and gas company to execute the mammoth complex about 350 km southwest of Muscat.

Described by PDO as one of the “largest and most complex ventures” to be undertaken in its history, the project aims to simultaneously harness the hydrocarbon potential of a number of sour oil and gas reservoirs — a feat that PDO is seeking to accomplish for the first time.

When fully completed in 2020, Yibal Khuff will help bolster PDO’s future oil production, while also delivering associated gas for power generation and enhanced oil recovery operations. Peak average production is targeted at 20,000 barrels per day (bpd) of oil and 6 million cubic metres per day of gas.

Last week, more than 80 Petrofac employees working on the landmark scheme received a special ‘Shukran’ award for outstanding performance from PDO. The award ceremonies took place at Petrofac’s offices in Chennai (India) and Sharjah (UAE).

PDO’s top representative at the ceremonies applauded the success of the contractor’s teams in working in sync with PDO’s engineers in the smooth implementation of the project. This dedication and commitment will serve as a paradigm for cooperation on future projects to be executed as part of the newly signed long-term framework agreement between PDO and Petrofac, the UK contractor quoted the PDO representative as stating.

Under the contract awarded in 2015, Petrofac is providing engineering, procurement, construction management and commissioning support services on a reimbursable basis with incentives. Thus, Petrofac’s profit will be linked to the achievement of specific milestones and a potential gain share on procurement, according to the contractor. The total value of the contract is around $900 million.

As of last month, the project was 40 per cent complete and “progressing well and on schedule with 38 out of 65 milestones achieved”, the contractor said in an update posted on its website.

“Major ordering has been completed, engineering is more than 70 per cent complete and construction activities are about to start. A critical activity under way is the delivery of the materials to site and the creation of warehousing and storage facilities,” it stated.

At the heart of the project is a Central Processing Facility that rests on a mammoth steel structure covering a 1.5 sq km site. An estimated 13,500 tonnes of structural steel will go into the construction of the structure, comprising essentially pipe racks on which will rest around 660,000 diameter-inch of piping. Massive quantities of concrete, material for storage tanks, and cabling for electrical and instrumentation works are envisioned as well.