Petrofac JV on verge of securing $2bn refinery contract in Oman
A 50:50 joint venture (JV) comprising Petrofac and South Korea’s Samsung Engineering is close to landing a $2bn contract with Duqm Refinery and Petrochemical Industries (DRPIC) in the southern part of Oman.
The JV has received notification of intent to award the contract from DRPIC to build a refinery.
Petrofac engineering and construction group managing director Sathyanarayanan said: “This significant project represents our twelfth in the country and serves to reinforce Petrofac’s commitment to one of our core markets; one in which we have been present since 1988.
“Furthermore, it provides a valuable opportunity for us to continue to increase in-country value through engaging with the local supply chain and recruitment of local resources.”
Scheduled to run for 47 months, the project contract is awaiting financial closure and full notice to proceed from DRPIC.
The scope of work to be assigned to Petrofac and Samsung includes engineering, procurement, construction, commissioning, as well as training and start-up operations for all the utilities and offsites at Duqm.
The proposed refinery covering more than 2,000 acres will come up in the Duqm Special Economic Zone.
Once completed, it is expected to have a refining capacity of around 230,000 barrels of oil per day.
The refinery will comprise hydrocracking, hydrotreating and delayed coking units and will produce light / middle distillates, with a primary focus on naphtha, jet fuel, diesel and LPG products.
Image: Duqm Area. Photo: courtesy of Duqm Refinery and Petrochemical Industries Company.