Press Release


  • Dec 08, 2014
  • SAOC

Muscat, December 8th 2014 – Oman Oil Company`s SAOC (OOC) majority owned subsidiary Musandam Power Company SAOC (MPC) signed the engineering, procurement and construction (EPC) contract and Long Term Service Agreement (LTSA) with Wärtsilä Muscat LLC for building a new dual fuel fired Power Plant in Tibat-Wilayat Bukha at Musandam Governorate. Under the agreement, Wärtsilä, a global leader in complete lifecycle power solutions, will design, procure and manage the construction of the 120MW gas-fired power plant, as well as provide on-going maintenance and performance monitoring during the concession period of 15 years from the commissioning date.

The EPC and LTSA agreements were formalised at OOC`s head office by Eng. Mohammed Al-Abduwani, the Chairman of MPC together with Upma Koul, Business Development Manager and Seppo Hautajoki, Managing Director of Wärtsilä Gulf FZE.

Eng. Al-Abduwani said, "Musandam Power Company has selected an optimal reciprocating engine (RE) configuration for Musandam`s Independent Power Project (IPP) following a completive pre-qualification and tendering process to deliver flexible and sustainable energy to the Musandam Governorate. We will be able to meet the power needs of the current and upcoming projects in the Governorate of Musandam. We are also expecting that the power plant will directly benefit the local community and the people of the Governorate."

He added, "In partnership with Wärtsilä, the environmentally-friendly Musandam Power Plant will use clean natural gas as main fuel to maintain the stability of the local electricity supply and support sustainable development in the Governorate while significantly contributing to the Sultanate`s energy-production capabilities and long-term economic diversification plans. Construction of the new power plant of 120 MW is expected to begin in early December 2014 and is schedule to be ready for full operations by the last quarter of 2016."

Wärtsilä is the world`s fourth-largest supplier of gas and liquid fired power plants with a proven track record of delivering high energy efficiency and operational and fuel flexibility. MPC, the joint venture between OOC holding a 70% stake, and LG International retaining 30% stake, was established in 2014 as Oman`s first IPP in Musandam and uses fuel gas to be processed by OOC`s wholly owned subsidiary, Oman Oil Company Exploration and Production (OOCEP) from the adjacent Musandam Gas Processing Plant, in order to integrate the value chain and meet the growing demand for energy in the Governorate of Musandam.