Spearheading Growth

Oommen John P23-06-2018, 11:55 PM

Oman Oil Refineries and Petroleum Industries Company (Orpic), one of the largest
organisations in the Sultanate of Oman and among the most rapidly growing
businesses in the Middle East Downstream Oil and Gas industry, has embarked on
a bold and ambitious strategic growth plan with a key focus to position the
company as a globally competitive downstream business.
The company’s Refineries in Suhar and Muscat, as well as the integrated
Aromatics and Polypropylene Plants in Suhar, provide Fuels, Chemicals,
Polymers, and other Petroleum products to the Sultanate and to the World. Orpic
has charted an ambitious growth plan which will increase its asset base by over
$9bn and its product portfolio by over four million tonnes/year of Fuels and
To meet the needs of Oman and the international markets, Orpic has undertaken
three strategic growth projects – Suhar Refinery Improvement Project (SRIP),
Muscat Suhar Product Pipeline (MSPP) and Liwa Plastics Industries Complex
(LPIC), in line with the company’s strategy to add value to the Oil and Gas
resources of Oman. Two of these Projects – SRIP and MSPP – are completed, and
the third, LPIC, will be completed in 2020. Orpic is also establishing offices in
China, Singapore and India as part of its plan increase its global footprint.
Orpic’s investments impact Oman’s economy in various ways. Orpic’s operations
and strategic growth projects support GDP growth, increase Oman’s exports, and
create job opportunities for Oman’s growing workforce through direct, indirect and
induced employment.
Suhar Refinery Improvement Project (SRIP)
SRIP, a $2.7 billion investment, started commercial operations in February 2018. It
has upgraded the company’s Refining capability in order to further maximise the
value of Omani Crude Oil, by adding refining capacity and supporting more
complex refining that produces higher value products.

“With SRIP, the Suhar Refinery will add 82,000 barrels per day (bpd) to its
existing capacity of 116,000bpd – taking the total capacity to 198,000bpd. This
represents 70% growth in Fuel production, and includes more than 40% Propylene
growth and the tripling of Naphtha production,” says Al Jahdhami.
“This will enable Orpic to meet domestic demand for Oil and Refined products,
supporting the economic development of the Sultanate. In addition, the increased
Naphtha production will reduce Orpic’s reliance on Naphtha purchases from 75%
of its total requirement to 25%. Orpic currently imports Naphtha in support of the
feedstock needs for its Aromatics and Polypropylene plants.”
Muscat Suhar Product Pipeline (MSPP)
This $336 million investment, which developed state-of-the-art storage and
transportation facilities, was recently inaugurated. These facilities will not only
improve costs in the downstream primary logistics sector, they will also
consolidate the wholesale Fuel distribution and enable Orpic to increase its margin
from Fuel sales. More than 70% of Oman’s Fuel needs will be served by the Al
Jifnain Terminal, the new hub for Fuel supply to local marketing companies. The
terminal also started to supply Aviation Fuel through a direct pipeline to support
the requirements of Muscat International Airport.
“This is a first of its kind project to be constructed in Oman – removing the need
for Orpic to ship Refined products between Muscat and Suhar, bringing a new
level of efficiency, and reducing cost to its business. The project is equipped with
loading facilities designed to cater to the loading of more than 500 trucks per day.”
“In addition to meeting the domestic demand for Fuels, MSPP’s increased Fuel
storage capacity at Al Jifnain will help to reduce pollution as a result of a
significant reduction of Fuel truck movement in Muscat city centre,” Al Jahdhami
Liwa Plastics Industries Complex
The commissioning of the $6.4bn LPIC project in 2020 will transform Orpic’s
product mix and business model, double the company’s revenue and supporting the
development of a downstream plastics industry in Oman. LPIC consists of a Gas
Extraction Plant in Fahud, a 300km Fahud-Suhar Pipeline, and the Steam Cracker
and Polymer Plants at the Suhar Industrial Area. The Steam Cracker Plant will
process light-ends produced in Orpic’s plants in Suhar as well as the rich gas
received from the 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 markets.

LPIC is the largest transformational project undertaken in Oman which will
contribute to the GDP of the Sultanate by 2% and support creating a wide ranging
downstream industry. It will link the Fahud Natural Gas Liquid (NGL) via a
pipeline with the project’s main plants in Suhar as part of an integrated complex
that houses also Suhar Refinery, Aromatics and Polypropylene plants. With LPIC
Commissioned in 2020, Orpic will become one of the most integrated Refinery and
Petrochemical operations in the world, which will enable the company to extract
the maximum value from Oman’s Oil and Gas.
With the global market for plastics growing, Orpic’s Polymer Marketing division
was established in 2017 to strengthen the company’s position in Oman and
internationally. The marketing division aims to contribute to the development of
the local Oman economy and the global Polyolefin industry. Through this
marketing division, Orpic’s Polymers will competitively offer innovative and
differentiated Polypropylene Products and Solutions to its customers worldwide.

Future Focus
“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. We will continue to drive the organisation to
achieve excellence in all activities starting with building a strong customer focus
mind-set, elimination of non-value adding activities and by embedding continuous
improvement culture.” Orpic is setting up offices in China, Singapore and India to
establish its footprint worldwide and to provide excellent services to its business


Enter the code shown above in the box below

null Select "Edit Content" from the Edit (Pencil Icon) Action Menu
You must be a Host User to create new modules