Challenges of Gas and Oil Mega-Projects: Suhar Refinery

Abstract

EPCC for the Suhar Refinery Improvement Project in Oman The Suhar Refinery Improvement Project is one of the largest oil and gas projects ever awarded in Oman. Valued at US$ 2.1 billion, this was truly a ‘mega project in region’ and was executed by Petrofac in Joint Venture with Daelim and successfully completed in 2017. Petrofac and Daelim provided a turnkey Engineering, Procurement and Construction and Commissioning (EPCC) solution, which involved upgrades and improvements at the existing facility as well as the addition of new refining units. Delivered through a lump-sum turnkey model, Petrofac leveraged more than three decades of EPC expertise in Oman to shape its local delivery and reduce supply chain costs. Petrofac formed an integrated team with its partner Daelim, the client and JV partners to create a seamless approach, this included a focus group initiative toward flawless start-up as well as the utilisation of common systems, procedures and processes. On completion Sohar's existing output increased by more than 70% to exceed 185,000 barrels per day as well as significantly improving environmental performance. The project's safety performance was exemplary, achieving more than 53 million man-hours without a lost time incident, with a peak project manpower of 14,000. The creation of In-Country Value (ICV) was a guiding principle throughout, involving the training and development of Omani nationals and the support of local supply chains. The Suhar Refinery Improvement Project was on the winning nomination list that aided ORPIC to win the ICV Strategy Award in 2016. Resourcing was a critical component of the project both in terms of manpower levels required and the drive towards ICV. This paper aims to showcase the ability of major contractors to work in unison, sharing knowledge and capabilities, to reduce the challenges faced in the execution of mega projects; as well as the role of local content in successful implementation of major projects enabling the development of a capable local workforce.