SK wins refinery upgrade

07 June 2002

Oman Refinery Company (ORC)has issued SK Engineering & Constructionof South Korea a letter of intent for the contract to upgrade the Mina al-Fahal refinery. SK was the low bidder at $32 million for the project. Five other companies submitted bids for the work, ranging from $34 million-47 million. ORC expects the contract signing to take place by the end of June (MEED 29:3:02; 11:1:02).

The project entails the supply and installation of a 15,000-barrel-a-day (b/d) diesel hydro-desulphurisation (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 a 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.

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