SK bids low for refinery job

28 March 2002

South Korea's SK Engineering & Constructionis the low bidder at $32 million for the contract to build a diesel hydro-desulphurisation (DHDS) unit at the Mina al-Fahal refinery. Six international contractors submitted bids in November for the project. The client, Oman Refinery Company (ORC), expects to complete its evaluation by the end of April (MEED 16:11:01; 11:1:02).

In second place at $34 million was a team led by Germany's Krupp Uhde, followed by Sharjah-based Petrofac International, with the local Galfar Engineering & Contractingat $38.1 million. Bids ranged up to $47 million.

The project calls for the supply and installation of a 15,000-barrel-a-day (b/d) DHDS, amine treating and sulphur recovery unit, as well as associated pumps and equipment. Work is expected to take 18 months. The US Halliburton KBRcarried out the front-end engineering and design (FEED) for the

project.

Mina al-Fahal, which was opened in 1982, has the capacity to process 85,000 b/d of oil. Output is mainly used to meet local demand for gasoline, jet fuel, kerosene, liquefied petroleum gas (LPG) and bunker fuel. The new units will process 50 parts per million sulphur-carrying diesel, producing pure sulphur, which can then be used in a number of industries including petrochemicals.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications