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Duqm Refinery, a joint venture of Oman Oil Company (OOC) and Kuwait Petroleum Worldwide (KPI), has notified three worldwide groups of its intent to award a lot of packages that collectively constitute the estimated $7 billion refinery venture and related infrastructure deliberate for implementation on the Special Financial Zone (SEZ) at Duqm.
In all, three large multi-billion dollar packages had been up for grabs, each of them for execution on an Engineering, Procurement and Building (EPC) foundation. The primary of those packages, labelled EPC 1, and comprising the principle process units of the refinery, went to the consortium of Tecnicas Reunidas (Spain) and Daewoo Engineering & Development (S Korea).
The second package deal, dubbed EPC 2 masking the development of utilities and offsite amenities was awarded to the joint enterprise of Petrofac (UK) and Samsung Engineering (S Korea).
Italian oil and gas contractor Saipem International was named the collective winner of three other elements of the mammoth refinery projects, collectively designated EPC three. These entail the construction of a product storage and export terminal at Duqm Port (EPC-A); eight storage tanks at Ras Markaz (EPC 3-B) the place an enormous crude oil storage park is planned; and an eighty km crude oil pipeline from Duqm SEZ to Ras Markaz (EPC three-C).
Worldwide multi-disciplinary consultancy providers supplier Amec Foster Wheeler was named the Mission Management Advisor for the EPC section of the refinery challenge.
The awards, that are subject to the all-essential discover-to-proceed anticipated later this 12 months at the side of financial close, mark an end to a keenly contested tendering part, which started in November 2015. Then, Duqm Refinery invited worldwide firms and their native partners to prequalify for Packages 1 and 2 of the venture, which was adopted by Package deal 3 in December 2016.
Pending the award of the EPC contracts, Duqm Refinery gave the green gentle for the preparation of a 900-hectare site on the SEZ. An army of around 1,300 workers, backed by 850 pieces of earthmoving equipment, were involved in site preparation works involving around 12 million cubic metres of earth works and different services.
Once operational in 2021, the refining capacity will attain 230,000 barrels per day and can produce a number of key refinery merchandise: diesel, jet fuel, naphtha and liquefied petroleum gas.
In the meantime, Petrofac stated the EPC 2 package deal awarded jointly with Samsung Engineering is price approximately $2 billion. Work on the 47-month venture will begin shortly, topic to financial closure and full notice to proceed from Duqm Refinery, it stated.
Petrofac’s and Samsung’s scope of work contains engineering, procurement, construction, commissioning, training and start-up operations for all the utilities and off-websites at Duqm.
E Sathyanarayanan, Group Managing Director, Engineering & Building, commented: “This important challenge represents our twelfth in the country and serves to reinforce Petrofac’s commitment to one in every of our core markets; one by which we’ve been current since 1988. Moreover, it supplies a valuable opportunity for us to continue to extend in-country value through partaking with the native supply chain and recruitment of native assets. “We are very much wanting forward to working with Samsung on this project and growing our relationship with Duqm Refinery.”
Duqm Refinery and Petrochemical Industries Company LLC is a Joint Enterprise (JV) between Oman Oil Company (OOC) and Kuwait Petroleum International (KPI). This strategic partnership between OOC and KPI has been established in the incorporation of Duqm Refinery, primarily based in Al Duqm.
This gives the mission a strategic maritime location and a aggressive benefit being in the path of international delivery traces within the Indian Ocean and the Arabian Sea thus easing the means of transport in and out of the region.

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