Award for Oman's Duqm Refinery packages by Q4 2016

A pair of multi-billion dollar contracts linked to Duqm Special Economic Zone will be awarded towards the end of 2016

14 December 2015
A pair of multi-billion dollar contracts linked to the establishment of a major greenfield refinery at the Duqm Special Economic Zone in Oman's Wusta Governorate will be awarded towards the end of 2016, according to a key project official.

Yaqoob al Habsi (pictured), Head of Project Interfaces at Duqm Refinery, said the contracts are for the two lump sum turnkey (LSTK) packages that together make up the Engineering-Procurement-Construction (EPC) scope of the mammoth project.

Speaking at a Logistics Seminar hosted by Port of Duqm yesterday, Al Habsi said a total of seven consortiums have been prequalified to bid for the two packages. EPC 1 comprises the process units, while EPC 2 covers the utilities and offsite works.  All seven bidders are scheduled to send representatives on a tour of the sprawling site in Duqm tomorrow, Tuesday, the official said, adding that the bidders have the option to bid for both packages.

Earlier, Al Habsi described the Duqm Refinery project -- a 50/50 partnership of the wholly government owned Oman Oil Company and International Petroleum Investment Company (IPIC) of the Government of Abu Dhabi -- as "one of Oman's most significant undertakings to date in the energy field".  The 230,000 barrels per day capacity refinery, he stated, would help "create additional value to Omani natural resources by optimizing flexibility of feedstock".

Site preparation work, currently being undertaken by well-known Omani firm Galfar Engineering & Contracting, is due to be completed by the third quarter of 2016, he said. Besides carrying out an estimated 13 million cubic metres of earthworks, the contract also calls for the construction of a flood protection ditch along the western boundary, and temporary drainage ditches and culverts.

Listing other highlights of the year in the implementation of the strategically vital project, Al Habsi said work on the front-end engineering design (FEED) has been completed by Amec Foster Wheeler.  Other notable service providers tapped by Duqm Refinery to provide specialist support services include Technip E&P Limited as Project Management Consultants, Credit Agricole as Financial Advisers, Allen & Overy as Legal Advisers, WoodMac and HIS as Market Consultants, and Marsh Oman LLC as Insurers. Oman Trading International (OTI) and CEPSA have been appointed as the Crude and Product Offtake traders, he said.

Separately, a number of utilities and tie-ins that fall outside of the scope of the EPC packages will be undertaken in parallel with the EPC phase, said Al Habsi. Electricity and water will be provided by the Central Utilities Company (CUC), while wastewater will be channelled through an outfall system to be built by SEZAD / CUC.  SEZAD will also undertake the development of the service corridor linking the refinery with the liquid jetty.

Likewise, Oman Tank Terminal Company (OTTCO), which is building a major crude storage park at Ras Markaz just north of the Duqm SEZ, will pump a blend of crude to the refinery by pipeline. The Ministry of Oil and Gas will oversee the development of the 80 km pipeline link from Ras Markaz and Duqm Refinery.

All of these additional facilities will be put in place according to timelines that match the requirements of Duqm Refinery, said Al Habsi. Final completion of the refinery project is slated by Q3 2020, he added.

© Oman Daily Observer 2015