Highlights

Duqm Refinery signs EPC contracts

Duqm Refinery, a joint venture equally owned by Oman Oil Company and Kuwait Petroleum International, recently signed contracts with its engineering, procurement and construction (EPC) contractors for building the 230,000 barrels per day (bpd)-refinery in Duqm.

This was a follow-up from the intention to award EPC contracts announced by the project in mid-2017, according to a press release.

Duqm Refinery’s EPC scope of work was divided into three separate packages. The scope of first EPC included the process units of the refinery, while the second EPC consisted of the utilities and offsite facilities. The third EPC package included the product export terminal in Duqm Port, the Duqm Refinery dedicated crude storage tanks in Ras Markaz and the 80 km interconnecting pipeline from these crude tanks to Duqm Refinery.

“This mega project will ultimately lead towards transforming Duqm area into one of the most important hubs for encouraging and promoting energy related industries regionally as well as internationally,” said Eng. Nabil Bourisli, Chairman of Duqm Refinery. “The project creates a great value proposition and can enhance prosperity for both countries,” he added.

“This is indeed a very important milestone for the project, it signifies the seriousness of the shareholders decision to proceed on the project. This project will boost the developments efforts in Duqm,” said Eng. Hilal Al Kharusi, Deputy Chairman of Duqm Refinery. “The financing of the project has reached an advanced stage and we aim to issue a notice to proceed to contractors very soon,” added Eng. Al Kharusi.

The ceremony was attended by Yahya bin Said bin Abdullah Al Jabri, Chairman of the Special Economic Zone Authority at Duqm, in 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 representing the contractor’s 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 synergize the area of Duqm and make it a viable and strategic energy hub in the region.

The first EPC package for building processing units was won by a joint venture of Tecnidas Reunidas and Daewoo Engineering & Construction Co. The second package for developing utilities and offsite facilities was bagged by a joint venture of Petrofac International Limited and Samsung Engineering Co Limited.

Also, 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.