Contractors told to start construction on Duqm refinery

05 June 2018

Oman’s Duqm Refineries & Petrochemical Industries Company (DRPIC) has formally issued a notice to proceed (NTP) to contractors to begin work on the Duqm refinery project.

DRPIC, a 50:50 joint venture (JV) of state-owned Oman Oil Company and Kuwait Petroleum International, held a formal groundbreaking ceremony on 26 April. The project is expected to be completed and ready for startup 42 months from the issue of the NTP.

In February, DRPIC awarded three engineering, procurement and construction (EPC) packages worth $5.75bn.

The EPC work at Duqm refinery is divided into three separate packages. The scope of EPC 1 includes the process units, while EPC 2 comprises the utilities and offsite facilities. EPC 3 includes the product export terminal at Duqm port, the Duqm refinery dedicated crude storage tanks at Ras Markaz and the 80-kilometre interconnecting pipeline from these tanks to the refinery.

A JV of Spain's Tecnidas Reunidas and South Korea's Daewoo Engineering & Construction won package 1. A JV of UK-based Petrofac and South Korea's Samsung Engineering won the second package, while the third parcel went to a JV of Italy's Saipem and US-based CB&I.

Contractors will initially allocate resources to complete detailed engineering design work at their home offices, where they will be joined by staff from Duqm refinery.

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