The value of Duqm Refinery’s third engineering, procurement and construction (EPC) package awarded to Italian firm Saipem is $900m, according to sources close to the scheme.

The final package with the 230,000 barrel-a-day refinery includes eight storage tanks in Ras Markaz, a product export terminal and 80km interconnecting pipeline to Duqm.

Duqm Refinery, a joint venture between Oman Oil Company and Kuwait Petroleum International announced the winners of its three EPC packages last week.

Confirming earlier MEED reports, the refinery client awarded package one, which involves developing oil processing facilities, to South Korea’s Daewoo and Spain’s Tecnicas Reunidas.

The second package, which covers facilities, utilities tankage and buildings, was awarded to UK’s Petrofac and South Korea’s Samsung Engineering. The contract is estimated to be worth more than $2bn.

The Duqm Refinery scheme which is the sultanate’s largest single phase project has yet to reach financial close, with the client now seeking to reach this next milestone in November.

The refinery will receive 70 per cent of its crude feedstock from Kuwait, and the remainder from local fields.

Once commissioned, it will produce diesel, jet fuel, naphtha, liquefied petroleum gas, sulphur and pet coke as its primary products, which will be traded from the adjacent Duqm port.