OWS, SIPC to set up oil and gas hub at Sohar freezone

By V L Srinivasan

Muscat, May 1 - The agreement signed between Oil Field Warehouse & Services (OWS) and Freezone Sohar (FzS) for setting up an oil and gas enclave in an area of 50 hectares in the free zone is expected to provide the much needed relief for drilling companies in the country.

The agreement was signed by Sohar Industrial Port Co (SIPC) chief executive Jan Meijer and Freezone Sohar's chief operating officer Jamal T Aziz and OWS managing director Vinay R Sharma at the Ministry of Commerce and Industry.

At present, the majority of such companies providing backup services are located in the Jebel Ali and other freezones in neighbouring UAE, but a few are spread across the sultanate. In fact, OWS is the first company to set up an oil and gas enclave in the sultanate and expects to attract more than 100 firms, which provide technical services to drilling companies to open their workshops, manufacturing setups and maintenance bases in the enclave. The agreement will be in force till 2043.

"We want to develop an oil and gas hub in FzS, which will not only serve the oil drilling companies in the sultanate but also in the entire Middle East and in Asia," OWS managing director Vinay R Sharma said.

Speaking to Muscat Daily after signing the agreement with FzS officials, Sharma said that they were creating an atmosphere where people can start businesses by reducing their administration and operation costs along with ease of operations. "It is also a proud moment and we hope that it will set an example to others to follow us. OWS will act as a facilitator for the new companies by providing one stop services that include lease of ready to move in factories and other support and expects to do a business of about US$200-300mn during the 33-year agreement period,” Sharma said.

Mott MacDonald & Co managing director Vinod Shah signed a separate agreement for the design and engineering services for the first phase of the FzS coming up in 500 hectares in the North Batinah region. This multidisciplinary project will be managed by Mott MacDonald’s specialists in Oman and the UAE with support from technical staff in India and the UK.

Vinod Shah said that Sohar, which boasts a world-class port facility, is being positioned as the new entry point to the Gulf, due to its strategic location and access to existing and emerging transportation links. The freezone, located adjacent to the port will complement the port facility and contribute significantly to the realisation of the Greater Sohar Industrial Area.

“Our scope of work for FzS includes detailing the concept master plan for the site, geotechnical investigations and the design of roads, site fencing and storm water drainage requirements. Our team will also prepare development control regulations to guide the development of the site and anage the tendering process for the construction of infrastructure,” he said.