Oman's Al Hassan Engineering Secures $60 Million Engineering Contract for Power Plant in Amal

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Researched by Industrial Info Resources (Sugar Land, Texas)--Oman's state-owned Petroleum Development Oman (PDO) (Muscat) has awarded leading engineering, procurement and construction (EPC) company Al Hassan Engineering Company SAOG (MSM:HECI) (AHEC) (Muscat) an EPC contract worth almost $60 million for the implementation of a 252-megawatt (MW) gas-fired open cycle power plant project at PDO's facility in Amal. The facility will consist of two units of 126 MW each. The project will be executed on a lump sum turnkey basis and is scheduled for completion within 24 months. Under the contract conditions, PDO will supply AHEC with the gas turbine generator and associated accessories and controls.

AHEC is one of the companies under the Contracting Strategic Business Unit (SBU) of the Al Hassan Group of Companies and has grown to become the contractor of choice for local and international EPC contractors. In more than three decades of existence, the company has successfully executed projects in core sectors such as midstream and downstream sectors of oil and gas, operations and maintenance of oil and gas plants, electricity transmission and distribution, power, industrial infrastructure, and water and wastewater treatment plants. Trading and Manufacturing are the two other SBUs of the Al Hassan Group. Hassan Ali Salman is the Chairman, while Maqbool Ali Salman is the Managing Director of the group.

The major projects that make up AHEC's current order book are the Salalah methanol project for GS Engineering & Construction Corporation (SEO:006360) (GS E&C) (Seoul, South Korea), and the A'Seeb sewage treatment plant being developed for Haya Water (Muscat) and Hyundai Rotem Company (Seoul). AHEC is also executing various projects for PDO, including the Nimr-C full field water injection project, projects in the power sector, and the Burhan West and Harmal West pipeline project.

In January 2009, AHEC was awarded with a multimillion-dollar contract by PDO for the Burhan West and Harmal West pipeline project. The contract involves construction of duplex stainless steel (DSS) pipelines and flowlines in Harmal West and Burhan West, along with associated monitoring, protection, electrical distribution, and control infrastructure. AHEC is one of the few contractors that are capable of handling materials such as DSS.

In October 2008, AHEC was awarded a $43 million contract by Hyundai Rotem for executing architectural and civil works for the A'Seeb wastewater project, which is being developed by Haya Water, formerly known as Oman Wastewater Services Company (OWSC). OWSC signed a $228.5 million contract with Hyundai Rotem for the main wastewater treatment plant, and Hyundai Rotem signed AHEC as a subcontractor for implementing part of the work. The $1 billion wastewater project is scheduled for completion in early 2011.

In June 2007, AHEC was awarded a $40.9 million contract to implement certain general construction works for the development of the Salalah methanol project. The contract was awarded by GS E&C, the EPC contractor for the project. The $900 million methanol plant is being set up by Salalah Methanol Company LLC (Muscat) in the Salalah Free Zone (SFZ) and is scheduled to begin operations in early 2010.

AHEC is also the key subcontractor for GS E&C in the $1.6 billion petrochemical project being developed in Sohar by Aromatics Oman LLC (AOL). AOL is a 60:20:20 joint venture company formed by Oman Oil Company SAOC (Muscat), Oman Refinery and Petrochemicals Company (Muscat) and LG International Corporation (SEO:001120) (Seoul). AHEC is executing a $65 million contract for GS E&C.

AHEC is also involved in setting up power stations for PDO in Qarn Alam and Mukhaizna. The company is also involved in certain mechanical engineering works and the erection of steam turbine generators and heat recovery steam generators as part of its contract with Alstom SA (EPA:ALO) (Levallois-Perret, France), which is setting up a 1,000-MW captive power plant for the $2.4 billion Sohar aluminum project being set up by Sohar Aluminium Company (Muscat).

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