Duqm refinery receives commercial bids on final package

12 April 2017

Development of Duqm is part of sultanate’s diversification strategy for port cities

Duqm Refinery has received commercial bids on its third package for offsite facilities, which includes eight storage units from the world’s largest crude storage tank farm at Ras Markaz, according to sources close to the project

The 230,000 barrel-a-day refinery, which is moving towards reaching financial close by year-end is in bid evaluation phase across all tendered packages. The last package includes eight storage tanks with 550,000 barrels capacity each.

MEED reported that Oman Tank Terminal Company tendered the $400m crude tank farm facility at Ras Markaz in late February. Set to be the largest in the world, the facility will have a capacity of six million barrels in its first phase, which will be expandable to 200 million barrels. The refinery will be alloted 4.4 million barrels of this capacity.

MEED reported that the refinery had received technical bids on the third package. The groups submitting commercial bids are as follows:

  • Tecnicas Reunidas (Spain)/Daewoo (South Korea)
  • Petrofac (UK)/Samsung Engineering (South Korea)
  • Saipem (Italy)
  • Rotary Engineering (Singapore)
  • Kentz (Ireland/Canada)

The scope of the package includes the following components:

  • Terminal export facilities
  • Crude pipeline (from Ras Markaz)
  • Crude tank Farm (at Ras Markaz)
  • Pumping station
  • Associated facilities

Once commissioned, the refinery is set to produce diesel, jet fuel, naphtha, liquefied petroleum gas, sulphur and pet coke as its primary products, to be traded from the adjacent port at Duqm.

The project recently signed Kuwait Petroleum International as joint venture partner. Abu Dhabi’s International Petroleum Investment Company exited the project last year citing the direction of the refinery no longer fit in with its investment strategy.

The development of Duqm refinery forms part of Oman’s efforts to diversify its economy, through integrated energy and logistics projects in towns such as Sohar and Salalah.



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