Oman Oil, Gulf Energy Sign Deal for 326MW Duqm Power Project

BANGKOK, Oct. 3, 2018 /PRNewswire/ -- Oman Oil Company, the sultanate's energy investment arm, through its subsidiary has signed a partnership agreement with Thailand-based Gulf Energy Development to develop Duqm independent power and water project.

The agreement was signed by Eng Isam al Zadjali, CEO of Oman Oil, and Sarath Ratanavadi, CEO of Gulf Energy Development, Oman Oil announced in a tweet on Thursday.

Duqm independent power and water project will be a gas-fired power project with an installed power generation capacity of 326MW and an installed water generation capacity of 1,667 cubic meters per hour. The project is a partnership between Oman Oil's subsidiaries where they will hold 55 per cent and Gulf Energy Development's subsidiary, which will own 45 per cent, Oman Oil said.

Gulf Energy Development is one of Thailand's largest power generation developers, producers and operators.

Oman Oil said that the project is located in Duqm Special Economic Zone and has secured a long-term power and water purchase agreement to generate and supply electricity and water to Duqm Refinery. 'This prestigious project will be the first captive power plant developed by Oman Oil's infrastructure vertical. It also highlights the integration approach which Oman Oil is developing through projects that would create added value through the whole energy chain', the company said.

In a filing to the Stock Exchange of Thailand, Gulf Energy Development on Thursday said that the company had submitted a tender to jointly invest in Duqm Power Company (DPC), which is the operator of Duqm independent power and water project, with Oman Oil. 'The company was officially informed by Oman Oil on September 3 that the company (Gulf Energy Development) has been selected as the successful investor in the project with an equity interest of 45 per cent', it said.

Total project cost for Duqm independent power and water project is US$483mn, according to the Gulf Energy Development's disclosure. The project will gradually begin commercial operation in three phases, starting from July 2020 to May 2022, in accordance with Duqm Refinery's electricity and water consumption plan, Gulf Energy Development said.

SOURCE Gulf Energy Development