Saipem has secured a $750m worth onshore engineering contract for the development of the Duqm Refinery situated near the coast in the north east of Oman.
The contract was awarded by Duqm Refinery and Petrochemical Industries Company, which is a 50:50 joint venture between the Oman Oil Company (OOC) and Kuwait Petroleum International (KPI).
Saipen said that the contract involves engineering, procurement, construction and commissioning under Package 3 offsite facilities in the framework of the development of the refinery.
The Duqm Refinery is proposed to come up at the Special Economic Zone of Duqm (SEZD), approximately 600km south of Muscat, Oman.
Upon completion, the facility is expected to have a refining capacity of about 230,000 barrels per day.
Saipem CEO Stefano Cao said: “We welcome with particular satisfaction the awarding of this new contract which signals the relaunch of our activities in Oman, a country in which Saipem has operated successfully in the past.”
In September last year, a consortium consisting of CB&I and Saipem had won an engineering, procurement and construction (EPC) for the refinery. The contract scope included the EPC of a product export terminal, a crude tank farm and an 80-km crude oil pipeline.
The refinery is estimated to be built will a total investment of $7bn.
The natural gas for the refinery will be sourced from the Saih Nihayda gas plant in central Oman and conveyed to the new Duqm gas supply station (GSS) through a new 221km-long and 36in-diameter pipeline.
In August last year, Petrofac’s joint venture with Samsung Engineering had received an order worth $2bn for the Duqm Refinery project.
The scope of the contract secured by Petrofac and Samsung included engineering, procurement, construction, commissioning, training and start-up operations for all the utilities and offsites at Duqm.
The refinery will be spread over 2,000 acres of land and is considered as a strategic investment for the Sultanate of Oman.
It is expected to become operational in 2021.
Image:Upon completion, it will have a refining capacity of nearly 230,000 barrels of oil per day. Photo: courtesy of supakitmod/Freedigitalphotos.net.