Client: Petroleum Development Oman
Project value: US$900 million
Location: 350 km south west of Muscat
In 2015, Petrofac was awarded its second contract with Petroleum Development Oman (PDO) for the Yibal Khuff project, an integrated oil and sour gas facility located approximately 350 km south west of Muscat.
Similar to the Rabab Harweel Integrated Project, Petrofac is providing engineering, procurement, construction management and commissioning support services on a reimbusable basis with incentives. This enables us to procure the materials, leveraging the purchasing capability of our lump-sum turnkey (LSTK) business, and sharing the savings with our client.
PDO has seen some significant benefits as a result. Across both projects our procurement leverage returned savings of more than US$300 million to PDO.
The Yibal Khuff project is a technologically complex project due to the mega high sour oil and gas content.
We’ve been able to share all our learnings from our early collaboration with PDO to form a strong strategic partnership, working as one team to deliver fantastic results. This has included staying aligned to the achievement of the scheduled milestones and implementing new ways of working, such as the introduction of a material traceability and management system for structural steel.
We’re implementing work face planning to support construction packaging using Construct-Sim software. The Information Management systems implemented by Petrofac have received accolades from PDO and will be used on future projects.
When complete, the Yibal Khuff field will deliver:
Development of the field will add to PDO’s future oil production, whilst the associated gas will be used for power generation and enhanced oil recovery developments.
The project is supported by around 540 Petrofac employees.
For the first time in Petrofac’s history, the offsite and pipeline scope of the project is being executed from our Muscat engineering office.
Project update: March 2018
Watch PDO’s video showing the latest progress at the Yibal Khuff project and the safety initiatives on site:
Project update: July 2017
More than 80 employees received a special 'Shukran' award from PDO for outstanding performance on the project.
PDO's Abdullah Jabri, EP Contract Holder and Facilities Delivery Manager, praised the way in which the PDO and Petrofac teams were working together with full co-operation and dedication.
Project update: June 2017
The project is 40% complete and is progressing well and on schedule with 38 out of 65 milestones achieved.
Major ordering has been completed, engineering is more than 70% complete and construction activities are about to start. A critical activity underway is the delivery of the materials to site and the creation of warehousing and storage facilities.
The project is introducing the following materials to site:
The philosophy of the engineering team on the project has been to work as an integrated team with PDO and solve the engineering challenges together; this has been a critical success factor.
Swaminathan S, Project Director, Yibal Khuff