Saipem wins $750m E&C contract for Duqm Refinery in Oman

Italian oil and gas industry contractor Saipem has secured a contract valued at approximately $750m to support the development of the Duqm Refinery in Oman.

Under the contract, awarded in the onshore engineering and construction (E&C) sector, the company will be responsible for providing engineering, procurement, construction and commissioning works under Package 3 ‘Offsite Facilities’ for the construction of the project.

The new contract has been awarded to Saipem by Duqm Refinery and Petrochemical Industries Company, a joint venture (JV) establishment between the national oil firm Oman Oil Company (OOC) and Kuwait Petroleum International (KPI).

Saipem chief executive officer Stefano Cao said: “We welcome with particular satisfaction the awarding of this new contract which signals the re-launch of our activities in Oman, a country in which Saipem has operated successfully in the past.”

Located near the coast in the north-east of Oman, Duqm Refinery is the first phase of the larger Duqm refinery and petrochemical complex development project.

The second phase of the project will involve the construction of a new petrochemical complex at the site.

Once completed, the Duqm Refinery will have the capacity to process approximately 230,000 barrels every day.

Featuring two processing units, the hydrocracking unit (HCU) and the delayed coker unit (DCU), the facility will have the flexibility to process a wide range of crude blends at optimum capacity.

In June 2012, the Duqm Refinery and Petrochemical Industries JV was to formed to own and manage the development of the refinery and petrochemical complex.