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Sohar Power to take hit from plant stoppages

Omani company counts the cost of flooding and technical issues.

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Oman, Sohar, News

Sohar Power Company said it expects to take a financial hit after ‘technical problems’ twice disrupted production at its power and water plant.

On May 3, a sea water pipe belonging to the Orpic refinery in Sohar burst, resulting in flooding of the sea water intake area in the industrial port of Sohar, the company said in a statement to the Muscat Securities Market.

The incident caused an unexpected shutdown at Sohar Power and Desalination plant on May 5, interrupting the supply of water to a PAEW reservoir as well as the supply of power to the network.

Then on May 19, after the water desalination plant had returned to 100% capacity, the plant faced another unexpected shutdown, most likely as a consequence of the earlier sea water flooding incident.

The plant is progressively being brought back to its full production capacity and resumed water delivery to PAEW reservoir.

A detailed assessment of the damages caused by the flood is still on-going and repair activities are in progress.

The financial impact of these events is estimated to exceed OMR 0.4mn ($1mn). As this incident was caused by an external party facility which had a knock on effect on SPC facilities, the company will claim compensation from Orpic.

Meanwhile Sohar Power had earlier suffered from unspecified operational issues at the plant on April 2.

Repairs have been launched and activity is expected to get back to normal on June 20, Sohar Power told the Muscat Securities Market.

The financial impact of this first stoppage is expected to vary between OMR 0.7mn and OME 1.4mn.

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