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  • 23/09/2018 Liwa Plastics Industries Complex Project (LPIC): On the right track

    Oman`s refining and petrochemicals flagship, Orpic states that the country`s most anticipated transformational project Liwa Plastics Industries Complex (LPIC) is currently underway and has already achieved more than 67% of project completion across its four EPCs. The project is set to improve Orpic’s product mix and business model, double its profit and support the development of a downstream plastics industry in Oman. Taking advantage of the growing global market for plastics, LPIC will create new business opportunities and employment in Oman, and firmly reinforce Orpic as a significant player in the international petrochemicals marketplace as it will bring new business development opportunities for the Sultanate in the fast-growing plastics industry.

    The project construction is ongoing and is expected to be completed by 2020. LPIC achieved 31 Million LTI-free man-hours out of 47 Mn man-hours spent since the project was kicked off. The overall cumulative progress achieved was 67.8% against the revised plan of 69.8% till June 2018.With a total investment of USD 6.7 billion, LPIC is expected to boost Orpic`s contribution to develop the In Country Value (ICV) for the national economy.

    With the global market for plastics growing, the Liwa Plastics Industries Complex will firmly reinforce Orpic as a recognized player in the international petrochemicals marketplace – enabling Oman, for the first time, to produce polyethylene, the form of plastic that rates highest in terms of global demand and increased the current production of polypropylene.

    Liwa Plastics Industries Complex consists of gas extraction plant in Fahud, 300-KM pipeline from Fahud to Suhar, steam cracker plant and polymers plant in Suhar Industrial area. The steam cracker plant will process light ends produced in Orpic’s plants in Suhar as well as rich gas received from Fahud plant. Its concept lies in rerouting high value elements of existing production streams, in combination with additional purchased feedstocks to deliver high value polymer products for the local and international marketplaces.

    The primary goal of Liwa Plastics Industries Complex is to further increase the value-added that can be derived from Omani crude oil and natural gas. The project has six core components to it:

    • A natural gas extraction plant in Fahud
    • 300km pipeline between Fahud and Suhar Industrial Port Area for gas transportation
    • An 800+kTA Steam Cracker Unit
    • An HDPE Plant
    • A LLDPE Plant
    • A Polypropylene Plant

    Following commissioning, plastics production is forecast to have increased by more than 1 million tonnes, giving Orpic a total of 1.4 million tonnes of polyethylene and polypropylene production.

    With the highly integrated complex in Suhar including the refineries, aromatics plant, steam cracker and the downstream polypropylene and polyethylene plants, the operation will be one of the best integrated refinery and petrochemical facility combinations in the world, and will be able to achieve the maximum value-added for Oman’s hydrocarbon molecule.The project is on schedule for completion in 2020.

    The anticipated outline timeline is as follows:

    • February 2014 FEED and Technology awarded
    • December 2014 EPC Tendering
    • October 2015 Award of EPC
    • Q4 2019 Start of Commissioning
    • Q2 2020 Commercial Operational

    Anticipated production volumes

    • 838 KTA of Polyethylene (LLDPE/HDPE)
    • 215 KTA of Polypropylene
    • 186 KTA Mogas
    • 46 KTA Benzene

    Employment

    • The construction phase of LPIC will require up to 20,000 Full Time Equivalents (FTEs).
    • The indirect employment effect is expected to create more than 1,200 jobs in the local area.

    LPIC EPCs

    In 2015, Orpic awarded four contracts for Engineering, Procurement and Contracting (EPC) packages worth USD 4.5 Billion for Liwa Plastics Industries Complex (LPIC) Project to:

    • EPC 1 (Steam Cracker and Utilities): CB andI and CTCI Corporation Joint Venture, USD 2.8 billion.
    • EPC 2 (Plastics units): Tecnimont S.p.A, USD 888 million.
    • EPC 3 (NGL Extraction): GS Engineering and Construction and Mitsui and Co. Ltd consortium, USD 688 million.
    • EPC 4 (NGL Pipeline): Punj Lloyd Ltd, USD 112 million

    About USD 1.5 Billion of the total project, cost is allocated to support ICV. The engineering, procurement and construction (EPC) works lasting for 4 years until the launch of the project in 2020 will lead to a great addition to the ICV platform across the Sultanate through the joint efforts of the Orpic’s ICV team and the key contractors of the four project packages.

    Orpic supports ICV by reinforcing & developing businesses and taking human capabilities into consideration. This is achieved by reaching authenticated (made in Oman) products and materials bought by the company and grow the human capital in all Orpic projects by ensuring at least 30% Omanization in the companies working for the project, realizing social and economic benefits by supporting and implementing social investment projects and the sustainable development for Omani SMEs through the direct support to the companies associated with Orpic businesses.

    The work of the ICV team revolves around a clear action plan to achieve its objectives which include 30% Omanization in the project, training 15% of Omani staff working in the contracting companies and supporting Omani companies, including SMEs and Omani suppliers through job opportunities available in the project by 25%. At the beginning of each project, a plan is agreed with the contractor in order to achieve the ICV objectives through Omanization and training along with supporting the Omani products and companies.

    Dr. Hilal Abdullah Al Hinai, GM Support Services at Orpic, said: "Based on our value of serving Oman and customers with pride, we at Orpic, are proud to achieve maximum ICV through our development projects. At LPIC, we built up our productivity in the Omani economy through providing more job opportunities, training and support for SMEs directly through many local contracts, business opportunities and tenders offered by the project packages, guaranteeing 10% of the total contracts and tenders in materials and raw materials for these organizations. Orpic ICV strategy, in line with the national plan of the Sultanate, aims at supporting and developing businesses and the development of human resources and enhancing productivity with regard to serving the national economy by maintaining the maximum value within the country. We have secured USD 93 million through supporting more than 500 SMEs in the Sultanate, and we are proud for winning the Entrepreneurship Award for "Best Support by a huge company" at the recent Al Riyada Awards 2018.

    EPC 1 major ICV millstones

    Orpic`s ICV team had some great achievements in all schemes related to ICV. In the EPC 1, implemented by the main contractor CCJV, efforts had yielded significant results with the employment of 282 Omanis for the main contractor in all levels by 40%. 1338 Omanis were employed in the entire EPC 1, which is equivalent to 25%. In training during 2018, 273,955 hours out of 56,232 with the main contractor were achieved, which is by 19% and 77,456 work hours out of 296,802 in the entire EPC 1, equivalent to 20%. Tenders were awarded at a total cost of USD 209 million, which is equivalent to OMR 80.3 million so far. More than 350 SMEs benefited from contracts valued more than USD 20 million, which is equivalent to OMR 8 million.

    It has been also agreed with the main contractor to offer job training opportunities in the company`s headquarters in the Netherlands for a number of Omanis graduating from different universities and colleges in the Sultanate in various engineering specializations. Accordingly, eight students from both genders were sent to the Netherlands for two months with costs inclusive of training to improve their practical potentials in projects. Furthermore, three students were sent to join a six-month training program in Taiwan in different specializations. In regards of providing training opportunities for Omanis to improve their required professional skills in engineering projects, 257 students with general diploma and below were sent for training in technical institutes in the Sultanate for 18 months and then will be joining for work in the project as technical staff. And with regard to CSR programs done by the ICV team, which aims at supporting the local community through the implementation of sustainable projects serving the community and Oman, the team supported Suhar Hospital by providing a machine for manufacturing artificial limbs for the respective laboratory, which will contribute in serving more than 700 patients yearly and will help reducing the time needed for limb-manufacturing for the patients from 2 months to 10 days. Moreover, ICV team was managed to encourage EPC-1 main and subcontractors to adopt seven CSR projects at North Al-Batinah region with focus on health and educational centers located in the area.

    EPC 2 major ICV millstones

    Regarding the achievements of the LPIC`s EPC 58 Omanis were employed by the main contractor at all levels, which is equivalent to 26%, while 973 Omanis were employed in the entire EPC, which is equivalent to 21%. Moreover in regards of working hours during 2018, 3,997 training hours out of 132,000 were achieved and 329,215 training hours out of 2,145,637 working hours in the whole package were scored. In terms of contracts and procurement, the team organized the 2017 Omani Italian Forum in collaboration with the Italian company "Tecnimont". The forum aimed at highlighting the job opportunities offered by the EPC 2 of the project and bringing new experiences to the Sultanate as well as establishing a mechanism for the development of SMEs through building up strong relations with the Italian companies which were more than 80 companies present at the Forum. During the Forum, tenders were awarded at a total cost of USD 196,033,769 million which is equivalent to OMR 75.3 million until June 2018. It also benefited a large number of SMEs worth more than USD 5 million, which is equivalent to OMR 1.9 million. Seven students were trained in the company`s headquarters in Italy and its offices in the UAE and Oman for one month to ensure their readiness to join the project and shaping their skills for handling various disciplines related to the company. Moreover, training opportunities for Omanis were provided to improve their professional skills required in engineering projects by sending 196 students with general diploma and below for training in technical institutes in the Sultanate for a period of 18 months, and who will later be employed in the project as technical staff. Adding to that, 66 workers with the main contractor and subcontractors in various domains were trained.

    EPC 3 major ICV millstones

    The main contractor for the EPC 3 is GS Engineering and Construction, during which 109 Omanis were employed by the main contractor at all levels, which equals to 36%. However, in the entire EPC 3, 315 Omanis were employed, which is equivalent to 20%. For training, 2,603 training hours out of 164,710 for the main contractor were achieved. On the other hand, 124,344 training hours were achieved out of 507,530 in the entire EPC 3. In contracts and procurement, Orpic`s ICV team organized a forum for Omani entrepreneurs in Al-Dhahirah Governorate with the main contractor to build relations between the main contractor and Omani companies as well as highlighting the job opportunities of this EPC. Furthermore, tenders were awarded at a total cost of USD 90.8 million, which is equivalent to OMR 34.9 million so far. SMEs have also benefited from contracts worth more than USD 8 million, which is equivalent to OMR 3 million. Additionally, Orpic agreed with the main contractor to provide job training opportunities in the company`s headquarters in Korea for a number of Omani graduates from different universities and colleges in the Sultanate in various engineering specializations. Six students so far have been sent to Korea to be trained for two months.

    EPC 4 major ICV millstones

    This EPC 4 was managed by the main contractor, Punj Lloyed, where 528 Omani were employed were employed at all levels, which is equivalent to 29%. Recruitment is ongoing until the end of the project. Regarding the training, 7,049 training hours were completed out of 1,025,600 with the main contractor till the end of 2017. The agreed Percentage will be cleared by the end of 2019. With regard to contracts and procurement, the ICV team has collaborated with the main contractor to figure connections between the main contractor and Omani companies to identify further job opportunities in the EPC 4 and how to compete over them transparently. Tenders were awarded at a total cost of USD 67.3 million which is equivalent to OMR 25 million so far. Also, SMEs had benefited from contracts worth more than USD 4 million, equivalent to OMR 1.5 million.

    100 students from the general diploma and below for training in some technical institutes in the Sultanate for 12 months. Later, they will be employed in the project as technical staff in the fourth package with a total of 600 students who got practical training opportunities in various companies and universities in the Netherlands, Taiwan, Italy, Korea and others with the full support of the companies assigned to the engineering, supply and construction works in LPIC project.

    Technical EPCs updates of LPIC:

    PC1 - Steam Cracker, Utilities and Offsites

    • The erection of 103 m Ethylene Fractionator Column (the tallest Column in Steam Cracker Unit) was completed.
    • Similarly, the erection of two Propylene fractionators was completed, which is 2nd tallest Column in SCU in Mar-2018.
    • Installation of Transfer Line Exchangers for Cracking Heaters was completed.
    • Hydro-testing of Butene-1 Storage Sphere was completed.
    • EPC2 - Polyethylene and Polypropylene Units
    • Cycle Gas Compressors in Polyethylene Unit were erected.
    • Completed Installation of Silos on Polypropylene Extrusion Building.
    • Completed HIPOT Test for 33KV Panel of Power Intake Substation.

    EPC3 Natural Gas Liquids Extraction

    • Commenced installation of 6.6 KV Switchgear in Main Substation.
    • Heavy equipment (De-methanizer column) were received at Duqm port then transported to site.

    EPC4 14” Natural Gas Liquids Pipeline

    • The Factory Acceptance Test for Leak Detection System was completed.
    • Moreover, 71% of the welding of 14” NGL pipeline was completed.

  • 03/09/2018 Orpic is committed to meet the fuel demands with the quality meeting Omani standards

    Oman Oil Refineries and Petroleum Industries Company –Orpic has observed a number of queries concerning fuel quality supplied to some fuel stations particularly in north Al Batinah & Al Buraimi governorates. Orpic is committed to supply the local demand of fuels in the Sultanate through its refineries in Mina Al Fahal and Suhar as well as its logistic network in Suhar, Al Jefnain and Raysut. Orpic reassures the public that all its petroleum products are supplied to all marketing companies with the same quality as per the approved measures and specifications in the Sultanate of Oman.

  • 29/08/2018 Orpic reveals a new Robotic application for invoice processing

    Oman Oil Refineries and Petroleum Industries Company – Orpic has recently launched a new technological solution to implement the first Robot application in Orpic covering invoices processing in SAP. This new technological innovation comes to continually enhance the company`s efforts towards business excellence as part of its mission to sustainably maximize value for its stakeholders, as their partner of choice.

    Mohammed Al Kaabi, Financial Controller – Orpic comments on this new service: "To achieve our vision of becoming a globally competitive downstream business that Oman is proud of, we are focusing on Business Excellence, primarily through Digitization, Innovation and R&D. The launch of this new service is yet another step further towards the journey of excellence to cater for the need of our suppliers and customers with state-of-the-art back office and customer service support".

    During the first run, the Robot application was able to process a transaction almost 5 times faster than a human which will enhance the productivity and work efficiency. The Robot application is an automation software, governed by business rules/logic that operates as a virtual workforce. It emulates human execution of tasks with higher accuracy, quality and compliance. Furthermore, it can be applied by quick deployment and low investment.

    This Robot application is planned to be rolled out further to various areas within Orpic to benefit from the process automation which result in deployment of manpower to high value-added activities. In addition, Orpic is also actively exploring to implement other latest technological advances which would help its journey to be a globally competitive downstream business that Oman is proud of.

  • 30/07/2018 Orpic and OGC sign Operation & Maintenance Service Agreement

    Oman Oil Refineries and Petroleum Industries Company – Orpic and Oman Gas Company (OGC) signed an agreement for the operation and maintenance of a Natural Gas Liquids Extraction plant (NGLE) and associated pipelines. The signing ceremony was held under the auspices of H.E Dr. Ali bin Masoud al Sunaidi, Minster of Commerce and Industry, and attended by government and private dignitaries, as well as Orpic and OGC executives.

    The agreement was signed by Eng. Ahmed bin Saleh al Jahdhami, Chief Executive officer of Orpic and Mr. Sultan bin Hamed al Burtmani, Acting Executive Managing Director of OGC.

    Under the NGLE services agreement, OGC will provide dedicated services for the operation and maintenance of Orpic`s Natural Gas Liquids Extraction (NGLE) plant located in Fuhud, the upstream of its Liwa Plastics Industries Complex (LPIC) project in Suhar. A roughly 300km 14 inch pipeline connecting the Fuhud NGLE plant with the Suhar complex will also be operated and managed by OGC as part of this arrangement.

    The C2+ extracted from Fuhud`s Natural Gas Extraction plant will be combined with the existing products from Orpic’s refineries and petrochemical plants, which supports in producing further integration and flexibility as well as making the full use of the crude materials.

    The services agreement will be implemented over three transitional phases throughout the project lifecycle. Each phase entails different levels of responsibility for OGC and Orpic alike.

    Speaking at the signing ceremony, Orpic CEO Ahmed bin Saleh Al Jahdhami stated: "This agreement comes as part of the Engineering, Procurement and Construction (EPC 3) Liwa Plastics Industries Complex Project (LPIC) which is an investment of USD 6.7 billion currently underway with a 67% overall progress and one of three strategic growth projects implemented by Orpic; driven by its vision to be a globally competitive, downstream business that Oman is proud of. This agreement with OGC marks Orpic’s trust on Omani companies and augments our relentless effort towards increasing the percentage from Orpic annual expenditure in In Country Value (ICV). LPIC will open up the potential to create over 1000 products in the plastics processing industry as well as to enable the extraction of high value products from Natural Gas for the first time in Oman".

    Importantly, Orpic NGL is the second processing facility that will be managed by OGC after SLPG, which both will leverage the Sultanate’s natural gas resources and support OGC transformation to become a leading energy infrastructure.

    “OGC is the platform for the entire energy midstream segment of Oman Oil Company’s (OOC) business portfolio. One of our key responsibilities is to ensure that the infrastructure is ready not only to maintain a reliable and uninterrupted supply of natural gas to consumers wherever they are in the country, but also to maximise the value generation from this resource. We aim to create an integrated technical system operator who will oversee the whole gas network in the country and integrate it with the midstream model for the Gas processing facilities in the long run,” said Mr. Sultan bin Hamad al Burtmani, Acting Executive Managing Director of OGC.

    “We are currently paving our way of transforming OGC into a globally renowned energy infrastructure utility that can be able to power Oman’s future.” Mr. al Burtmani added.

    It is worth highlighting that OGC is also laying down a new 32-inch gas pipeline parallel to the existing 32-inch Fuhud-Suhar pipeline to meet the growing gas demand in Suhar Industrial Port and supply gas to Ibri region.

  • 08/05/2018 Orpic sets a new benchmark - launches a new generation of high quality thermoforming Luban grade

    Oman Oil Refineries and Petroleum Industries Company (Orpic) has launched a new thermoforming grade called Luban HP1151K that will increase both productivity and the overall performance of transparent thermoformed cups, trays and containers. The new PolyPropylene thermoforming grade is based on Milliken`s nucleating innovation Hyperform® HPN-600ei. The new grade (Luban HP1151K) will be launched during 5th Oman Plast Exhibition 2018 at Oman Convention and Exhibition Centre.

    Orpic’s Luban HP1151K combines high clarity and aesthetics with a new level of superior dimensional stability for thermoformed products. Luban HP1151K is based on the latest technology available to offer the food packakging and household storage solutions industries a new benchmark in pure, high quality PP.

    Apart from being able to increase the number of articles that can be produced, the high quality finished products provide good stacking performance. It also offers a broad processing window that opens up distinct product quality and consistency advantages plus the all-important productivity benefits for converters.

    Additionally, the grade delivers optimal environmental and handling-related advantages associated with using lightweight PP compared to other materials.

    Gilles Rochas, General Manager – Polymer, Orpic says, “The product has a good resin base and tests conducted so far have been successful. Luban HP1151K reduces haze in the product and increases clarity and gloss. We are confident that upon introduction of Luban HP1151K, this high quality product will offer Oman and the international packaging customers an opportunity to reduce their cycle times and achieve better results through less wastage whilst offering all-round productivity improvements.”

    Hyperform HPN-600ei also offers good organoleptics with no contamination risk making Luban HP1151K suitable for food applications.

    To learn more about this amazing high quality product and see it first-hand, please visit our stand at OmanPlast 2018.

  • 07/05/2018 Orpic is Principal Sponsor of 5th Oman Plast2018

    Oman Oil Refineries and Petroleum Industries Company – Orpic, is pleased to announce its participation and principal sponsorship of the 5th International Plastics, Rubber, Petrochemicals, Printing and Packaging Industry Exhibition – Oman Plast 2018, which is taking place at the Oman Convention and Exhibition Centre, Muscat.

    The exhibition was inaugurated by H.E. Eng Salim Bin Nasser Bin Said Al-Aufi, Undersecretary, Ministry of Oil & Gas; and is attracting a large number of local and international plastics convertors, machinery manufactures and end-users, thereby providing an excellent trade and business opportunities forum for both exhibitors and visitors.

    “It is Orpic’s vision to become a globally competitive downstream business that Oman is proud of”, averred Ahmed Saleh Al Jahdhami, CEO of Orpic. “As one of the key steps towards achieving this vision, Orpic has established a Polymer Marketing unit in 2017 and is competitively offering differentiated polypropylene and polyethylene solutions to markets across the globe.”

    Speaking on the sidelines of the exhibition, Gilles Rochas, GM – Polymer Marketing, Orpic, stated: “By taking part in Oman Plast 2018, we aim to support the local and international plastics industry in unlocking new business opportunities and further developing the downstream plastic industry in Oman. We are delighted to participate in this event and explore the latest trends in the plastics industry with our customers”.

    Throughout the exhibition, a number of eminent Omani and international speakers from the polyolefin industry will be holding technical sessions, covering key topics such as Plastic Supply & Demand, Developing the Plastic Downstream Industry and Technical Advancement in Processing Technology, at the Orpic booth.

    Oman Plast is the ideal platform for industry experts and visitors to meet and exchange ideas on latest developments in the sector, while being introduced to the latest technology and machinery for plastics processing.