Petrofac awarded $2.1bn refinery contract

Oil and gas services provider Petrofac has secured a $2.1bn engineering, procurement and construction (EPC) contract from Oman Oil Refineries and Petroleum Industries (ORPIC).

The contract includes improvements at the existing facility originally constructed and commissioned in 2006 and adding new refining units. The facility is located in the Sohar Industrial Area, 230km north west of Muscat.

Petrofac secured the 36-month contract in a 50/50 joint venture with Daelim Industrial in Korea.

The revamped facility is expected to increase current output by more than 70% upon completion.

Petrofac onshore engineering and construction business managing director Subramanian Sarma said that the company’s partnership with Daelim will leverage its respective delivery capability for the refinery market.

"We have also been executing projects in Oman since 1988, having a detailed appreciation for the operating environment. ORPIC is a new customer for us and we look forward to strengthening our relationship as the project progresses," Sarma added.

Daelim overseas business development president and CEO CK Lee said thatcombining the company’s strengths with those of Petrofac provided a competitive proposal for the project.

"We also share the same ethos as Petrofac in our commitment to developing the local energy sector and look forward to working with them to deliver the project," Lee added.

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Image: The refinery is located in the Sohar Industrial Area, 230km North West of Muscat. Photo: courtesy of meepoohfoto / FreeDigitalPhotos.net