22 September 2012
MUSCAT -- Preliminary engineering design work on a giant refinery complex at Duqm has commenced, marking a key step in the development of, among other things, a major petrochemicals hub on Oman's Wusta coast. According to an official source at Duqm Refinery and Petrochemical Industries Company (DRPIC), which is spearheading the estimated $6 billion scheme, the preliminary design will provide the groundwork for the all-important Front End Engineering Design (FEED) due to be tendered out by around the end of this year, or early in 2013.
DRPIC is a 50/50 joint venture of Oman Oil Company (OOC), a wholly Omani government owned energy investment vehicle, and IPIC, a commercial entity owned by the Government of the Emirate of Abu Dhabi. The JV is overseeing the development of 11.5 million tonnes per annum (230,000 barrels per day) grassroots refinery at the Duqm Special Economic Zone, to be followed by investments in downstream petrochemical projects in the second phase.
It is understood that the preliminary engineering design is being primarily undertaken in-house by DRPIC's newly appointed Project Management Consultant, Shaw Energy and Chemicals Limited (acquired recently by French oilfield services giant Technip). Their appointment as Project Management Consultant, along with Christopher Wszolek as Project Director, was formally announced by DRPIC last month. The latter is a veteran of the international refining and petrochemicals industry with over three decades of experience, including the last 20 years as Senior Project Manager at Saudi Aramco.
Around eight firms are learnt to have been prequalified to participate in the FEED tender, documents for which are currently under preparation. They include some of the world's biggest players in refinery and petrochemical engineering design and execution. A tender for the Engineering-Procurement-Construction (EPC) contract is likely to be floated in the third quarter of 2013.
As a 'commercial export-oriented refinery', the Duqm venture will primarily process crudes imported by sea and shipped out as refined products (and petrochemicals in later phases). According to officials, there are no immediate plans for any pipeline links between the new refinery and the oil network of central Oman.
The refinery itself will be built at a 900-hectare site located just north of the Port of Duqm and connected to a proposed Liquid Jetty by a pipeline system. Duqm Petroleum Terminal Company (DPTC), a joint venture of the Port of Duqm Company (10 per cent), and Oman Oil Company (90 per cent), will operate and manage the jetty. The facility will be designed to accommodate ships of around 150,000 deadweight ton (DWT) capacity, bringing crude feedstock or loading refined products for export.
"We are focused on the overall feasibility study of the Liquid Jetty project, and we are working to align with the different authorities to see how to put everything about this project in place. That work is ongoing," said Reggy Vermeulen, Commercial Director, Port of Duqm.
"We have a lot to do to set up the joint venture company, and to work in alignment with all the concerned authorities, such as the Special Economic Zone Authority of Duqm (SEZAD), the Ministry of Transport and Communications, and the Ministry of Oil and Gas. A lot of meetings are being held with the different players around the refinery."
According to Vermeulen, the Liquid Jetty will be established along the Lee Breakwater on the northern side of the port. This area of the port will also be suitably dredged to receive crude oil tankers and product carriers that will come visiting starting from 2017, when the refinery is due to be brought into operation.
"The final depth (draft) for the Liquid berths is not yet specified, but it could be between -16 to -22 metres, depending upon on the requirements of the refinery. Basically, we are expecting the draft to be somewhere around -18 metres," the port's Commercial Director stated.
MUSCAT -- Preliminary engineering design work on a giant refinery complex at Duqm has commenced, marking a key step in the development of, among other things, a major petrochemicals hub on Oman's Wusta coast. According to an official source at Duqm Refinery and Petrochemical Industries Company (DRPIC), which is spearheading the estimated $6 billion scheme, the preliminary design will provide the groundwork for the all-important Front End Engineering Design (FEED) due to be tendered out by around the end of this year, or early in 2013.
DRPIC is a 50/50 joint venture of Oman Oil Company (OOC), a wholly Omani government owned energy investment vehicle, and IPIC, a commercial entity owned by the Government of the Emirate of Abu Dhabi. The JV is overseeing the development of 11.5 million tonnes per annum (230,000 barrels per day) grassroots refinery at the Duqm Special Economic Zone, to be followed by investments in downstream petrochemical projects in the second phase.
It is understood that the preliminary engineering design is being primarily undertaken in-house by DRPIC's newly appointed Project Management Consultant, Shaw Energy and Chemicals Limited (acquired recently by French oilfield services giant Technip). Their appointment as Project Management Consultant, along with Christopher Wszolek as Project Director, was formally announced by DRPIC last month. The latter is a veteran of the international refining and petrochemicals industry with over three decades of experience, including the last 20 years as Senior Project Manager at Saudi Aramco.
Around eight firms are learnt to have been prequalified to participate in the FEED tender, documents for which are currently under preparation. They include some of the world's biggest players in refinery and petrochemical engineering design and execution. A tender for the Engineering-Procurement-Construction (EPC) contract is likely to be floated in the third quarter of 2013.
As a 'commercial export-oriented refinery', the Duqm venture will primarily process crudes imported by sea and shipped out as refined products (and petrochemicals in later phases). According to officials, there are no immediate plans for any pipeline links between the new refinery and the oil network of central Oman.
The refinery itself will be built at a 900-hectare site located just north of the Port of Duqm and connected to a proposed Liquid Jetty by a pipeline system. Duqm Petroleum Terminal Company (DPTC), a joint venture of the Port of Duqm Company (10 per cent), and Oman Oil Company (90 per cent), will operate and manage the jetty. The facility will be designed to accommodate ships of around 150,000 deadweight ton (DWT) capacity, bringing crude feedstock or loading refined products for export.
"We are focused on the overall feasibility study of the Liquid Jetty project, and we are working to align with the different authorities to see how to put everything about this project in place. That work is ongoing," said Reggy Vermeulen, Commercial Director, Port of Duqm.
"We have a lot to do to set up the joint venture company, and to work in alignment with all the concerned authorities, such as the Special Economic Zone Authority of Duqm (SEZAD), the Ministry of Transport and Communications, and the Ministry of Oil and Gas. A lot of meetings are being held with the different players around the refinery."
According to Vermeulen, the Liquid Jetty will be established along the Lee Breakwater on the northern side of the port. This area of the port will also be suitably dredged to receive crude oil tankers and product carriers that will come visiting starting from 2017, when the refinery is due to be brought into operation.
"The final depth (draft) for the Liquid berths is not yet specified, but it could be between -16 to -22 metres, depending upon on the requirements of the refinery. Basically, we are expecting the draft to be somewhere around -18 metres," the port's Commercial Director stated.
© Oman Daily Observer 2012
