Two groups shortlisted for Duqm refinery package

29 March 2017

Commercial bids for first package were submitted in February

Two groups have been shortlisted for the engineering, procurement and construction (EPC) contract for phase one of Oman’s multibillion-dollar Duqm refinery, according to sources close to the project.

Teams formed by South Korea’s Daewoo and Spain’s Tecnicas Reunidas as well as the UK’s Petrofac, Japan’s Chiyoda Corporation and South Korea’s Samsung Engineering have been called in for further negotiations.

MEED reported that four firms had submitted commercial bids for the process unit and off-site and utilities packages in February.

Technical bids on the 230,000 barrel-a-day refinery in the central Omani port of Duqm were received in March 2016.

The groups that bid for the oil processing facilities package are understood to be:

  • CB&I (Netherlands-based) / CTCI (Taiwan)
  • JGC (Japan) / GS Engineering & Construction (South Korea) / Saipem (Italy)
  • Petrofac (UK) / Samsung Engineering (South Korea) / Chiyoda (Japan)
  • Tecnicas Reunidas (Spain) / Daewoo Engineering & Construction (South Korea)

Bidders for the second package, covering facilities, utilities tankage and buildings that will support the process, are understood to be:

  • CB&I / CTCI
  • Daelim (South Korea) / Hyundai Engineering & Construction (South Korea) / Hyundai Engineering (South Korea)
  • JGC / GS Engineering & Construction / Saipem
  • Petrofac / Samsung Engineering
  • Tecnicas Reunidas / Daewoo Engineering & Construction

MEED recently reported that Duqm refinery, which is the sultanate’s largest single-phase downstream project, had received technical bids on its last package, which includes the development of the region’s largest crude tank farm. The bidders include:

  • Rotary Engineering (Singapore)
  • Tecnicas Reunidas (Spain) / Daewoo (South Korea) 
  • Kentz (Ireland/Canada)
  • Saipem (Italy)
  • Petrofac (UK) / Samsung C&T (South Korea)

Oman recently tendered the region’s largest crude storage facility at Ras Markaz, which is part of the third package of the refinery project at Duqm. The first-phase works include the development of a 6-million-barrel capacity tank farm and the construction of pipelines and storage facilities at Ras Markaz.

Oman Oil Company (OOC) plans to expand the facility to have a capacity of up to 200 million barrels.

The refinery at Duqm is a joint venture between OOC and Kuwait Petroleum International, which replaced Abu Dhabi’s International Petroleum Investment Company as joint shareholder last year.

The project to build the refinery at Duqm is part of the sultanate’s efforts to diversify its economy by developing the central Omani town as an energy and logistics hub. Similar efforts are also under way at the port towns of Sohar and Salalah.

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