//Oman-Kuwait JV finalizes contracts for grassroots refining complex

Oman-Kuwait JV finalizes contracts for grassroots refining complex

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 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 (SEZAD) in Duqm, Al Wusta Governate, Oman (OGJ Online, Apr. 4, 2017; Jan. 25, 2016).

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—the largest of the project’s three packages—which covers EPC and commissioning of all main process units at the refinery.

As part of its scope of work under the, the Tecnicas Reunidas-led JV will deliver EPCC services for the following:

• Crude distillation; 230,000 b/sd.

• Vacuum distillation; 114,000 b/sd.

• Hydrocracking; 74,000 b/sd.

• Delayed coking; 52,000 b/sd.

• Kerosine treatment; 40,500 b/sd.

• Diesel hydrodesulfurization; 83,500 b/sd.

• LPG treatment; two units, each 12,500 b/sd.

• Hydrogen production; two units, each 126,500 normal cu m/day.

• Saturated gas; 6,500 tonnes/day (tpd).

• Sour water stripping; two units, each 44 tpd.

• Amine regeneration; two units, each 415 tpd.

• Sulfur recovery; three units, each 355 tpd.

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 additionally awarded a contract to Amec Foster Wheeler Engineering Consultancy LLC (AFW), a subsidiary of Amec Foster Wheeler PLC, to serve as project management consultant for the refinery’s EPC phase, the operator said.

These contracts join DRPIC’s award of a $2-billion contract for the project’s EPC Package 2—covering all utilities and off sites—to a consortium of Petrofac International Ltd. and Samsung Engineering Co. Ltd. (OGJ Online, Aug. 7, 2017).

Part of the Omani government’s plan for industrial development of SEZAD as well as to help meet rising demand for transportation fuels and petrochemicals in Oman and abroad, DRPIC has yet to confirm a definitive timeframe for when the complex will be fully commissioned.

Contact Robert Brelsford at rbrelsford@ogjonline.com.

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