Duqm Refinery inks agreements with major EPC contractors
Duqm Refinery’s scope of EPC work has been divided into three separate packages.
MUSCAT: Duqm Refinery, a joint venture equally owned by Oman Oil Company and Kuwait Petroleum International, has signed contracts with engineering, procurement, and construction (EPC) contractors to build a 230,000 barrels per day (bpd) refinery in Duqm. This development followed the intention to award EPC contracts after the project was an- nounced in mid-2017, according to a press statement.
Duqm Refinery’s scope of EPC work has been divided into three separate packages. The first includes the process units of the refinery, the second consists of utili- ties and offsite facilities, while the third EPC package includes the product export terminal in Duqm Port, the Duqm Refinery dedicated to crude storage tanks in Ras Markaz, and the 80km interconnecting pipeline from these crude tanks to Duqm Refinery.
“This mega project will ultimately lead towards transforming the Duqm area into one of the most important hubs to encourage and promote energy-related industries regionally, as well as internation- ally,” Eng. Nabil Bourisli, Chairman of Duqm Refinery, said.
“The project creates a great value proposition and can enhance the prosperity of both countries,” he added. “This is indeed a very important milestone for the project. It signifies the seriousness of the shareholders’ decision to proceed with the project, which will boost the development efforts in Duqm,” Eng. Hilal Al Kharusi, Deputy Chairman of Duqm Refinery, said. “The financing of the project has reached an advanced stage and we aim to issue a notice to proceed to contractors very soon,” Al Kharusi further said.
The ceremony was attended by Yahya bin Said bin Abdullah Al Jabri, Chairman of the Special Economic Zone Authority at Duqm; in the presence of Eng. Isam bin Saud Al Zadjali, Chief Executive Officer of Oman Oil Company; Eng. Nabil Bourisli; and Eng. Hilal Al Kharusi. Also present were ambassadors represent- ing the contractors’ countries of origin, senior officials from Oman Oil Company, Kuwait Petroleum International, the refinery project and EPC contractors.
The Duqm Refinery is being established in the special economic zone of Duqm. It is a project that would synergise the area of Duqm and make it a viable and strategic energy hub in the region.
The first EPC package to build processing units was won by a joint venture of Tecnidas Reunidas and Daewoo Engineering and Construction Co. The second package to develop utilities and offsite facilities was bagged by a joint venture of Petrofac International Limited and Samsung Engineering Co Limited.
The third package for offsite facilities was awarded to a joint venture of Saipem SpA and CB&I. The initial mobilisation of both Duqm Refinery and the contractor personnel is scheduled to commence in the third quarter of 2018.