23 April 2012
MUSCAT -- Plans for the establishment of a giant refinery at Duqm are making strong headway with the joint venture Omani and UAE partners set to appoint a Project Manager to oversee the execution of the estimated $6 billion venture.
According to a top official of Oman Oil Company, the wholly government owned investment company with a 50 per cent stake in the greenfield scheme, the process of selecting a project manager is currently being finalised.
"We are in the final stages of evaluations for a project manager. Hopefully, he will be in Oman by the 1st of June," Ahmed bin Salim al Wahaibi, Chief Executive Officer, said in comments to journalists
on the sidelines of the 3rd Oman Economic Forum yesterday.
The selection of a Project Manager is key to the further development of a "huge, complex and sophisticated" project like the proposed Duqm Refinery, he said. "We need specialised people to help us manage the Front End Engineering Design (FEED), set the criteria for selection (of consultants and contractors), in the development of training programmes for national manpower, put a good HSE system in place, and in the implementation and commissioning as well," the CEO stated.
The massive venture, with an estimated price tag of $6 billion, is set to be the largest investment in Oman's rapidly expanding industrial sector. It will also anchor an ambitious petrochemicals cluster envisaged in later phases of Duqm's development as an industrial hub.
The refinery's processing capacity will be sized at around 230,000 barrels per day (bpd), potentially placing it among the ranks of world-scale refineries. Its adaptable design will also allow the refinery to process all kinds of feedstock. "This is a very flexible refinery. It can process any type of crude depending on the market," Al Wahaibi said, adding that the project is targeted for completion by the fourth quarter of 2017.
Earlier, addressing delegates on the opening day of the Oman Economic Forum at Al Bustan Palace -- A Ritz Carlton Hotel, Al Wahaibi underlined the role of the Abu Dhabi-based International Petroleum Investment Company (IPIC) as a joint venture partner in the development of the Duqm refinery project.
A wholly owned investment company of the Government of the UAE Emirate of Abu Dhabi, IPIC has a 50 per cent stake in the project, he said, adding that the latter's "wealth of expertise" would be valuable to the overall success of the venture. IPIC's investment portfolio currently includes several world-leading chemical-based companies, notably Nova Chemicals, a North American plastics and chemicals company; Borealis, one of the world's largest polyolefin producers; Compañia Española de Petróleos (CEPSA), a Spanish integrated oil and petrochemicals company, and Cosmo Oil Company, a Japanese refining and marketing company.
Significantly, the proposed Duqm Refinery is set to further swell Oman Oil's multi-billion dollar investment portfolio. According to the CEO, Oman Oil is currently part of a family that has so far invested around $20 billion in projects here in Oman and abroad. The company's domestic investments currently employ around 7000 people directly, of whom 72 per cent are Omani, he said.
In addition, roughly 40 per cent of Oman Oil's portfolio has been invested in some 10 countries around the world - part of a strategy designed to position the company internationally, facilitate tech transfers, as well as raise Oman's profile globally.
Further, in tandem with its strategy to add value to the Sultanate's indigenous resources, Oman Oil is also pursuing efforts to maximize the value of its existing assets, Al Wahaibi said.
Towards this goal, the company is exploring opportunities for the expansion of, among other projects, the Sohar Aluminium smelter, Sur fertilizer plant of Oman-India Fertilizer Company (Omifco), the iron ore pelletising plant of Vale Oman at Sohar, and the Salalah Methanol scheme. Discussions are ongoing with the government for incremental additions of natural gas as feedstock and fuel to support the expansions of these wholly owned or subsidiary projects, he stated.
Another area been keenly explored for potential investment is the mining and minerals processing sector, he said. "We are looking at this sector along with the government," the CEO added.
MUSCAT -- Plans for the establishment of a giant refinery at Duqm are making strong headway with the joint venture Omani and UAE partners set to appoint a Project Manager to oversee the execution of the estimated $6 billion venture.
According to a top official of Oman Oil Company, the wholly government owned investment company with a 50 per cent stake in the greenfield scheme, the process of selecting a project manager is currently being finalised.
"We are in the final stages of evaluations for a project manager. Hopefully, he will be in Oman by the 1st of June," Ahmed bin Salim al Wahaibi, Chief Executive Officer, said in comments to journalists
on the sidelines of the 3rd Oman Economic Forum yesterday.
The selection of a Project Manager is key to the further development of a "huge, complex and sophisticated" project like the proposed Duqm Refinery, he said. "We need specialised people to help us manage the Front End Engineering Design (FEED), set the criteria for selection (of consultants and contractors), in the development of training programmes for national manpower, put a good HSE system in place, and in the implementation and commissioning as well," the CEO stated.
The massive venture, with an estimated price tag of $6 billion, is set to be the largest investment in Oman's rapidly expanding industrial sector. It will also anchor an ambitious petrochemicals cluster envisaged in later phases of Duqm's development as an industrial hub.
The refinery's processing capacity will be sized at around 230,000 barrels per day (bpd), potentially placing it among the ranks of world-scale refineries. Its adaptable design will also allow the refinery to process all kinds of feedstock. "This is a very flexible refinery. It can process any type of crude depending on the market," Al Wahaibi said, adding that the project is targeted for completion by the fourth quarter of 2017.
Earlier, addressing delegates on the opening day of the Oman Economic Forum at Al Bustan Palace -- A Ritz Carlton Hotel, Al Wahaibi underlined the role of the Abu Dhabi-based International Petroleum Investment Company (IPIC) as a joint venture partner in the development of the Duqm refinery project.
A wholly owned investment company of the Government of the UAE Emirate of Abu Dhabi, IPIC has a 50 per cent stake in the project, he said, adding that the latter's "wealth of expertise" would be valuable to the overall success of the venture. IPIC's investment portfolio currently includes several world-leading chemical-based companies, notably Nova Chemicals, a North American plastics and chemicals company; Borealis, one of the world's largest polyolefin producers; Compañia Española de Petróleos (CEPSA), a Spanish integrated oil and petrochemicals company, and Cosmo Oil Company, a Japanese refining and marketing company.
Significantly, the proposed Duqm Refinery is set to further swell Oman Oil's multi-billion dollar investment portfolio. According to the CEO, Oman Oil is currently part of a family that has so far invested around $20 billion in projects here in Oman and abroad. The company's domestic investments currently employ around 7000 people directly, of whom 72 per cent are Omani, he said.
In addition, roughly 40 per cent of Oman Oil's portfolio has been invested in some 10 countries around the world - part of a strategy designed to position the company internationally, facilitate tech transfers, as well as raise Oman's profile globally.
Further, in tandem with its strategy to add value to the Sultanate's indigenous resources, Oman Oil is also pursuing efforts to maximize the value of its existing assets, Al Wahaibi said.
Towards this goal, the company is exploring opportunities for the expansion of, among other projects, the Sohar Aluminium smelter, Sur fertilizer plant of Oman-India Fertilizer Company (Omifco), the iron ore pelletising plant of Vale Oman at Sohar, and the Salalah Methanol scheme. Discussions are ongoing with the government for incremental additions of natural gas as feedstock and fuel to support the expansions of these wholly owned or subsidiary projects, he stated.
Another area been keenly explored for potential investment is the mining and minerals processing sector, he said. "We are looking at this sector along with the government," the CEO added.
© Oman Daily Observer 2012
