Govt evaluating various capacity options. Capital expenditure to depend on capacity
MUSCAT -- The government is expected to take a go-ahead decision soon on the proposed refinery and petrochemical complex at Al Duqm in south-eastern Oman. "We will have a meeting of the Energy Resources Council tomorrow to discuss the issue. We are discussing on the initial feasibility study of the project submitted by our consultants," Dr Mohammed bin Hamad al Rumhy, Minister of Oil and Gas, told reporters on the sidelines of a PDO graduation ceremony yesterday. The government appointed an international consultant to carry out a feasibility study for the proposed project last year.
Dr Al Rumhy said the government would soon take a final decision on the envisaged capacity as well as investment required for the refinery and petrochemical complex. "We have different capacity options ......It could be 200,000, 250,000 or 300,000 barrels per day (bpd)....And the capital expenditure will depend on the capacity," he added. The installed capacity of the integrated petrochemical complex will depend on the designed capacity of the refinery. He added that it all depends on the capacity and in how many phases the government wants to complete the project.
There is significant government interest in the success of the Duqm refinery-cum-petrochemical complex as it is an integral part of an initiative to spread wealth throughout the country and create jobs for local people. It will add value to the hydrocarbon resources of the country, besides enabling the country as a major producer of various petrochemical products.
Meanwhile, the two state-owned refineries -- Oman Refinery Company (ORC) and a newly-built-Sohar Refinery Company (SRC) -- are in the process of merging together to form a large refinery. The merger will be completed soon. Nassir al Jashmi, Under-Secretary at the Ministry of Oil and Gas, said that a common chief executive officer has been appointed for the transition period. The merged entity will have a capacity to process more than 222,000 barrels per day of crude oil. ORC has a throughput capacity of 106,000 bpd, while Sohar Refinery has 116,400-bpd capacity.
By A E James
© Oman Daily Observer 2007
