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Contracts Awarded For $7 Bn Duqm Refinery Venture

Synthetic Ammonia EquipmentDuqm Refinery, a joint enterprise of Oman Oil Firm (OOC) and Kuwait Petroleum Worldwide (KPI), has notified three worldwide teams of its intent to award plenty of packages that collectively represent the estimated $7 billion refinery undertaking and associated infrastructure planned for implementation at the Particular Financial Zone (SEZ) at Duqm.
In all, three massive multi-billion greenback packages had been up for grabs, every of them for execution on an Engineering, Procurement and Building (EPC) basis. The primary of those packages, labelled EPC 1, and comprising the primary 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 — protecting the construction of utilities and offsite services — was awarded to the joint venture of Petrofac (UK) and Samsung Engineering (S Korea).
Italian oil and gas contractor Saipem International was named the collective winner of three other parts of the mammoth refinery tasks, collectively designated EPC 3. These entail the development of a product storage and export terminal at Duqm Port (EPC-A); eight storage tanks at Ras Markaz (EPC three-B) the place a giant crude oil storage park is deliberate; and an 80 km crude oil pipeline from Duqm SEZ to Ras Markaz (EPC 3-C).
Worldwide multi-disciplinary consultancy providers supplier Amec Foster Wheeler was named the Mission Administration Advisor for the EPC section of the refinery challenge.
The awards, which are topic to the all-essential discover-to-proceed expected later this 12 months at the side of monetary close, mark an end to a keenly contested tendering section, which began in November 2015. Then, Duqm Refinery invited international corporations and their local companions to prequalify for Packages 1 and a pair of of the undertaking, which was adopted by Package 3 in new energy December 2016.
Pending the award of the EPC contracts, Duqm Refinery gave the green mild for the preparation of a 900 hectare site on the SEZ. An military of round 1,300 employees, backed by 850 piece of earthmoving gear, were concerned in site preparation works involving round 12 million cubic metres of earth works and different providers.
Once operational in 2021, the refining capability will reach 230,000 barrels per day and will produce quite a few key refinery products: diesel, jet gas, naphtha and liquefied petroleum fuel.
Meanwhile, Petrofac stated the EPC 2 package awarded jointly with Samsung Engineering is price approximately $2 billion. Work on the forty seven-month project will begin shortly, subject to monetary closure and full notice to proceed from Duqm Refinery, it mentioned.
Petrofac’s and Samsung’s scope of work contains engineering, procurement, development, commissioning, coaching and begin-up operations for all the utilities and offsites at Duqm.
E Sathyanarayanan, Group Managing Director, Engineering & Building, commented: “This important project represents our twelfth within the nation and serves to reinforce Petrofac’s dedication to biggest oil companies biggest oil companies one of our core markets; one through which we’ve been current since 1988. Moreover, it provides a priceless alternative for us to proceed to extend in-nation worth through engaging with the local supply chain and recruitment of local sources. “We are very much trying forward to working with Samsung on this undertaking and growing our relationship with Duqm Refinery.”
Duqm Refinery and Petrochemical Industries Firm LLC is a Joint Enterprise (JV) between Oman Oil Firm (OOC) and Kuwait Petroleum International (KPI). This strategic partnership between OOC and KPI has been established within the incorporation of Duqm Refinery, based mostly in Al Duqm.
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