Regional Spotlight

New Ventures

Solar cells factory planned
A Saudi entrepreneur has announced he is setting up a factory in Jeddah to manufacture solar cells. 

Ebrahim Mohammad Afandi said the facility would cost SR70 million ($19 million), according to press reports. The solar cells would help isolated private homes and agricultural and industrial projects meet their needs of electricity generation at a low price, he added.
Afandi was quoted as saying the project was the first of its kind in Saudi Arabia and that the kingdom was leading the Arab world in the race to produce efficient solar cells.
“Since power generated by solar cells is not subject to taxes collected by power companies, consumers of solar power can save up to 25 per cent of their monthly electricity bills,” he said.
The factory capacity is about a million solar cells per year.  There were no details about the technology or technical collaboration.

Dubal awards contracts
Dubai Aluminum Company Ltd. (Dubal) has awarded three contracts totally worth Dh44 million ($12 million) for work including new facilities at its Jebel Ali smelter.
The first contract is a feasibility study for the rehabilitation of the smelter’s first three series of electrolytic cells, known as Potlines 1, 2 and 3.
The other two contracts are to engineer and manage the construction of a seventh potline and to provide construction management for a new casthouse.
SNC-Lavalin is acting as the client’s programme manager, responsible for overseeing all aspects of the work, including the joint selection of subcontractors. The feasibility study is already underway and work on Potline-7 and Casthouse-3 has begun. The contracts will be completed in 2005.
Dubal’s multi-billion-dollar state-of-the-art smelter complex comprises a 686,000 tonnes primary aluminum smelter, a 1,645 MW power station, a large carbon plant, two casthouses, a 30-million-gallon-per-day desalination plant, laboratories and research facilities, port and storage facilities, maintenance areas, and associated administration buildings.
Dubal is expanding the capacity of its Jebel Ali smelter. Once commissioned, the expanded smelter’s capacity will increase from 686,000 tonnes per year (tpy) to 761,000 tpy.
SNC-Lavalin is a global leader in the ownership and management of infrastructure, and a key player in facilities and operations management.

J Ray McDermott firms win project
J Ray McDermott Middle East and McDermott Arabia Company have been awarded a project to fabricate, transport and install additional offshore production facilities at Saudi Aramco’s offshore fields in Berri, Marjan and Safaniya.
The work is expected to take up to 18 months to complete. Both companies are subsidiaries of J Ray McDermott.
“The project is part of the Maintain Potential programme that Saudi Aramco has developed over the last 20 years,” said Edward Gedeon, general manager of projects for J Ray McDermott.
The company has a strong track record of successfully completing a number of challenging projects for Saudi Aramco, most recently in the Zuluf and Safaniya fields in October 2001.
The 2004 Maintain Potential project comprises two new jackets, four production decks, four rigid and three flexible pipelines, along with three submarine cables and anode sleds. J Ray’s Jebel Ali construction yard will fabricate the two steel jackets and four decks and work will begin on the structures later this year.
The decks weigh approximately 400 tonnes each and, with the weight of the jackets, the total tonnage is estimated at around 4,800 tonnes.
Saudi Aramco’s fields are located off the east coast of the kingdom in waters 18-51 m deep, and J Ray’s Gulf-based derrick barge, the DB27, will install the facilities in 2005.
J Ray’s offshore division will be responsible for the transportation and installation of the jackets and decks along with seven pipelines over 25 km in length. In addition, the scope includes the transportation and installation of three submarine power cables (5KV and 15KV) totaling 15 km in length.
“These fields are well developed and the area is full of existing platforms, pipelines and subsea cables. So special care, attention, and skill is required to manoeuvre the installation vessel in these waters,” said Gedeon.

Dow to build Oman plant
The US-based Dow Chemical Company will build and operate a petrochemical complex in Oman, tapping large natural gas reserves in a country that is also close to fast-growing Asian markets, the company said.
The project is a joint venture that will be half owned by Dow. The government of Oman and its Oman Oil Company each will own 25 per cent, Dow said.
Construction of the complex, to be located in the Sohar Industrial Port Area, is expected to start in 2005.
The plant will cost $1.5 billion to $2 billion, according to David Begleiter, analyst with Deutsche Bank, which has done investment banking for the company and owns shares.
The complex will use Oman’s natural gas to turn out chemicals such as polyethylene, used in plastics. Natural gas is a key ingredient in a wide range of chemicals.
“The Middle East will play an increasingly strong role in the global petrochemical industry,” said Dow chief operating officer Andrew Liveris, adding, “this joint venture will expand Dow’s presence in the region.”
The complex will include feedstock production facilities, a gas cracker and three polyethylene production units.
Begleiter expects construction to finish in 2008 or 2009.
A Dow spokesman declined to disclose further financial details of the venture.
 
Oman projects progressing
The Omani government has provided updates on some new projects.
Implementation of the Oman-India Fertiliser Company, a joint venture project between Oman Oil Company (50 per cent stake) and two public sector Indian fertiliser companies, Iffco and Kribhco, has begun in Sur.
The project will produce 1,652,000 tonnes of urea and 250,000 tonnes of liquid ammonia per year. The total cost is estimated at $969 million.
The $650 million Sohar International Urea and Chemical Industries, another fertiliser company promoted by Sheikh Suhail bin Salim Bahwan (a 100 per cent private company), will begin construction work by the end of September 2004.
It will produce 1.22 million tonnes of urea per year with commercial production beginning by the last quarter of 2007.
Construction for a methanol plant, jointly promoted by the Omzest group, Methanol Holdings (Trinidad) and Ferrostaal AG of Germany and operating as Oman Methanol Holding Company LLC, will begin by the first quarter of 2005.
Commercial production is expected by the last quarter of 2006. The capacity is 3,000 tonnes per day in the first phase.