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    1. Refining & Processing
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    Saipem details contract let for Oman’s grassroots Duqm refinery

    Feb. 15, 2018
    Saipem has confirmed the value of its portion of a previously awarded contract by DRPIC—a joint venture of Oman Oil Co. and Kuwait Petroleum Corp. subsidiary Kuwait Petroleum International Ltd.—for the final main contract package covering EPC of DRPIC’s long-planned 230,000-b/d refinery and petrochemical complex to be built on Oman’s northeastern coast.

    Saipem SPA of Italy has confirmed the value of its portion of a previously awarded contract by 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.—for the final main contract package covering engineering, procurement, and construction (EPC) of DRPIC’s long-planned 230,000-b/d refinery and petrochemical complex to be built in the Duqm Special Economic Zone in Duqm, Al Wusta Governate, on Oman’s northeastern coast (OGJ Online, Apr. 4, 2017).

    Saipem’s value of a jointly awarded contract with CB&I, Houston, for EPC Package 3 for construction of an offsite export terminal as well as crude oil pipeline and tank amounts to about $750 million, the service provider said on Feb. 15.

    Consortium partner CB&I previously valued its portion of the contract at about $140 million (OGJ Online, Sept. 18, 2017).

    Led by Saipem, the consortium will provide EPC, commissioning, and operation services for the project’s 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.

    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.

    With confirmation from both Saipem and CB&I regarding their portions of the contract, overall value of DRPIC’s EPC Package 3 stands at about $890 million.

    EPC Package 3 joins DRIPIC’s previous awards of a $2.75-billion contract to a JV of Tecnicas Reunidas SA 65% and Daewoo Engineering & Construction Co. Ltd. 35% 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, and 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).

    Initial mobilization of both the Duqm refinery and contractor personnel is scheduled to begin during third-quarter 2018, DRIPIC said in a separate release on Feb. 15.

    DRPIC, however, has yet to confirm a definitive timeframe for when the complex will be fully commissioned.

    Contact Robert Brelsford at [email protected].

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