Duqm Refinery eyes global markets

Duqm, contractors will drill as many as 2,000 bore holes to ensure that the plant is built on solid ground. In the meanwhile, engineering teams from the company as well as its consultants will pore over detailed engineering designs currently being finalized in three locations — Spain, Sharjah (UAE) and India.

Significantly, crude oil as feedstock for the 230,000 barrels per day (bpd) capacity Duqm Refinery will come from two principal sources: Kuwait (65 per cent) and Oman Export Blend (35 per cent). The feedstock will be supplied by ships that will discharge their cargoes at a new Crude Oil Storage Terminal under development at Ras Markaz just 80 km north of Duqm. Duqm Refinery is investing in storage capacity as well as a 28-inch pipeline that will link Ras Markaz with the refinery, the Acting CEO said.

Refined fuels for export will be pumped to a Liquid Terminal under construction 7 km away at Duqm Port.

“The SEZ Authority at Duqm (SEZAD) is providing us with quay walls and jetties for the export of our refined products,” said Nieuwenhuijze.

“We will be building the loading arms, tanks for storage and other export facilities as part of our investments. A 7 km long pipeline will carry the clean fuels to the terminal for export into the international market via Duqm Port.”

Output from the refinery will be marketed internationally by the respective marketing arms of Oman Oil Company and Kuwait Petroleum International, he said.

Construction of the refinery project has been apportioned into three main Engineeringprocurement-construction (EPC) packages as follows: (1) EPC 1 comprising process units — Joint venture of Tecnicas Reunidas SA & Daewoo Engineering & Construction Co Ltd (2).

EPC 2 comprising utilities and offsites — Joint venture of Petrofac International Limited & Samsung Engineering Co Ltd and (3) EPC 3 comprising offsite facilities — Saipem SPA.