Oman Tank Terminal Company (OTTCO) has received bids for the world’s largest crude storage facility at Ras Markaz.

Three companies submitted bids for the main contract on the $400m facility, which is being developed as an alternative crude storage and transportation facility to the Strait of Hormuz.

The bidders on the project are:

  • China Harbour Engineering/China Petroleum Pipeline Bureau JV (China)
  • Saipem (Italy)
  • Sinopec/Chinese Oil Engineering Construction Corporation JV (China)
  • Royal Boskalis Westminster/Rotary Engineering JV (Netherlands/Singapore)
  • Petrofac (UK)

The first phase of the project to be developed in the Al-Wusta governorate will have the capacity to store six million barrels of crude. OTTCO eventually plans to scale the project to accommodate 200 million barrels.

Of the planned initial phase, 4.4 million barrels will serve the $6bn Duqm refinery. Crude storage tanks to service the refinery were tendered as part of the third package on the project, which also includes terminal export facilities, crude pipelines as well as a pumping station. Saipem emerged the front runner on the final package, for which bids were submitted in April.

A source close to the project told MEED that there is a “huge probability” that a preferred contractor for Duqm’s final package would be chosen after bids were evaluated for the first phase of Ras Markaz since some of the work is set to overlap.

The last package of the 230,000 barrel-a-day refinery includes eight storage tanks with 550,000 barrels capacity each.

The first phase of Ras Markaz is expected to be completed in 2019. It will be located 70km south of Duqm and is the closest harbour to the special economic zone. It can handle crude super tankers and will be connected via a new 440km pipeline to Oman’s main onshore oil fields.

MEED reported that OTTCO had short-listed the following firms to submit bids for the engineering, procurement and construction deal for the storage facility:

  • China Petroleum Engineering & Construction Corporation (China)
  • Daewoo Engineering & Construction (South Korea)
  • Engineering for the Petroleum and Process Industries (Enppi) / Petrojet (Egypt)
  • IOT Infrastructure & Energy Services (India)
  • Larsen & Toubro (India)
  • Punj Lloyd (India)
  • Rotary Engineering (UAE)
  • Saipem (Italy)
  • Samsung C&T (South Korea)
  • Van Oord (Netherlands)

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

MEED reported that a team of Daewoo and Spain’s Tecnicas Reunidas was the favourite to win package one while a consortium of UK’s Petrofac, Japan’s Chiyoda Corporation and South Korea’s Samsung Engineering was the frontrunner for the second package of the refinery. The project has delayed the award of contracts as it has to yet to reach financial close, and may be looking to sign on more partners.