GULF’s Nonstop Expansion! Confirms Joint Venture in 326MW Gas-Fired Power Project in Oman
GULF will be joining with Oman Oil Company in a Power & Water Project with 326 MW of electricity and 1,667 cubic meter per hour of water.
Gulf Energy Development Public Company Limited (GULF) has submitted a tender to jointly invest in Duqm Power Company L.L.C. (DPC), which is the operator of Duqm Independent Power & Water Project with 326 MW of electricity and 1,667 cubic meter per hour of water capacity, with Oman Oil Company S.A.O.C. (OOC), a wholly-owned subsidiary of the Omani Government, and GULF is officially informed by OOC on September 3, 2018 that GULF has been selected as the successful investor in the Project with an equity interest of 45%.
GULF’s subsidiary, GULF International Holding Company Pte., Ltd. (GIH) will hold 45% stake in DPC, while the OOC group hold 55% stake in total. The project costs 483 million dollar or 15.8 billion baht ($1 = ฿32.78 as of Sep. 6, 2018).
The project will gradually begin commercial operation in 3 phases, starting from July 2020 to May 2022, in accordance with Duqm Refinery;s electricity and water consumption plan.
Duqm Independent Power & Water Project is a gas-fired power project, with an installed power generation capacity of 326 MW and an installed water generation capacity of 1,667 cubic meters per hour.
The Project is located in Duqm Special Economic Zone (Duqm SEZ), Oman, and has a secured Power and Water Purchase Agreement (25 years from the commencement of commercial operation date; then term may be extended by the parties for another 5 years.) to generate and supply electricity and water to a large-scale refinery, namely the Duqm Refinery and Petrochemical Industrial Company L.L.C. (Duqm Refinery), with a crude refining capacity of approximately 230,000 bpd (barrels per day). The Duqm Refinery is a 50:50 joint investment between OOC from Oman and Kuwait Petroleum International (Q8) from Kuwait.
As GULF holds 45% stake in the project at par value plus carrying cost, amounting to the total price of approximately $9 million (currently OOC has invested approximately $17 million), the transaction cost and the project return are reasonable and acceptable.