Oman-Kuwait JV lets contract for Duqm petchem complex

June 17, 2019

Downstream Technology Editor

Duqm Refinery & Petrochemical Industries Co. LLC (DRPIC), Muscat, a joint venture of state-owned Oman Oil Co. and Kuwait Petroleum Corp. subsidiary Kuwait Petroleum International Ltd., has let a contract to John Wood Group PLC to provide front-end engineering design for a proposed onshore petrochemicals complex in the Duqm Special Economic Zone (SEZAD) in Duqm, Al Wusta Governate, on Oman’s southeastern coast.

Wood’s capital projects teams in Oman and the UK, which will begin work under the contract immediately, will complete FEED services on the project by third-quarter 2020, the service provider said.

The latest FEED contract comes as part of DRPIC’s long-planned 230,000-b/d refinery and petrochemical complex to be built in SEZAD and follows the operator’s previous award to Wood for delivery of two of its proprietary Terrace Wall double-fired delayed coker heaters for the refining portion of the project (OGJ Online, Apr. 18, 2019).

In June, DRPIC issued main contractors a formal notice to proceed (NTP) with work on three previously awarded contracts for engineering, procurement, and construction of the refinery, which is due to be completed and ready for startup in 42 months from the NTP’s early June issuance (OGJ Online, June 6, 2018).

With a combined value of $5.75 billion, the three EPC packages include:

• EPC Package 1, the largest of the project’s three packages, covering EPC and commissioning of all main process units at the refinery by a JV of Tecnicas Reunidas SA and Daewoo Engineering & Construction Co. Ltd.

• EPC Package 2, covering delivery of EPC as well as commissioning, training, and other startup services for the refinery’s utilities and offsites by a consortium of Petrofac International Ltd. and Samsung Engineering Co. Ltd.

• EPC Package 3, covering EPC, commissioning, and operation services for the project’s associated off-site installations, 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 by a consortium of Saipem SPA of Italy and McDermott International Inc. (formerly CB&I) (OGJ Online, Feb. 15, 2018).

Primarily designed to produce and recover naphtha, jet fuel, diesel, and LPG, the Duqm refinery will include units for hydrocracking, hydrotreating, delayed coking, sulfur recovery, hydrogen generation, and Merox treating.