Oman-Kuwait JV finalizes contracts for grassroots refining complex

Sept. 25, 2017
Duqm Refinery & Petrochemical Industries Co. LLC, Muscat, a joint venture of Oman Oil Co. and Kuwait Petroleum Corp. unit Kuwait Petroleum International Ltd., has awarded the final two of three main contract packages for engineering, procurement, and construction of its long-planned 230,000-b/d refinery and petrochemical complex to be built in the Duqm Special Economic Zone in Duqm, Al Wusta Governate, Oman.

Robert Brelsford
Downstream Technology Editor

Duqm Refinery & Petrochemical Industries Co. LLC, Muscat, a joint venture of Oman Oil Co. and Kuwait Petroleum Corp. unit Kuwait Petroleum International Ltd., has awarded the final two of three main contract packages for engineering, procurement, and construction of its long-planned 230,000-b/d refinery and petrochemical complex to be built in the Duqm Special Economic Zone in Duqm, Al Wusta Governate, Oman.

DRPIC let a contract for EPC Package 3 for construction of an offsite export terminal as well as crude oil pipeline and tank farm to a consortium of Saipem SPA and CB&I BV, CB&I said.

Led by Saipem, the consortium will provide EPC, commissioning, and operation services for associated offsite facilities, including a product storage and export terminal at Duqm Port, a crude tank farm at Ras Markaz, and an 80-km crude oil pipeline from Ras Markaz to the refinery complex.

Specifically, CB&I will deliver all EPC for storage tanks at the export terminal and crude tank farm, while Saipem will perform the balance of the works under the contract package.

CB&I valued its portion of the contract at about $140 million.

While DRPIC has yet to officially confirm an overall cost of EPC Package 3, Omani local media reports estimate its value at $800-900 million.

Separately, DRPIC has awarded a JV of Tecnicas Reunidas SA 65% & Daewoo Engineering & Construction Co. Ltd. 35% the contract for EPC Package 1, which covers EPC and commissioning of all main process units at the refinery. Awarded on a lump-sum turnkey basis, the 47-month contract for EPC Package 1 is worth about $2.75 billion, Tecnicas Reunidas said.

Last month, DRPIC awarded a contract to Amec Foster Wheeler Engineering Consultancy LLC, a subsidiary of Amec Foster Wheeler PLC, to serve as project management consultant for the refinery's EPC phase, the operator said.