A subsidiary of Spanish contracting firm Tecnicas Reunidas has won a contract to undertake basic engineering and front end engineering design (FEED) of a bitumen refinery being planned at the Sohar Port and Freezone in Oman.

The refinery is being developed by Omani-registered Sohar Asphalt, which is 90 per cent owned by Bahraini independent petroleum trading and investment firm Al Mashael Group. The remaining 10 per cent stake is held by a leading Omani businessman, reported Muscat-based Oman Observer.

The plant is estimated to have a capacity of around 30,000 barrels a stream day to process heavy crude into bitumen as the main product, with atmospheric and vacuum distillates as by-products.

Annual production is estimated at a million tonnes of bitumen and 600,000 tonnes of naphtha, straight run distillates and vacuum gas oil.

“TR engineering has been engaged to develop basic engineering and FEED for the entire project. The project facilities include atmospheric and vacuum distillation units, sour water stripper unit, storages, associated utilities and off sites,” the Spanish firm said in a statement on its website.

“Crude oil will be imported and bitumen and the distillate products will be exported by sea.”

The bitumen refinery, which is due to start operation in 2017 is expected to meet Oman’s annual bitumen requirement.

An engineering procurement construction contract worth $315m was awarded in October 2015 to Indian engineering firm McNally Bharat Engineering Company, which won the bid to execute the project through its 50:50 special purpose vehicle with Oman’s EMC Group.