Oman: announcement of contract to be assigned to Saipem for the development of the Duqm refinery
An announcement has been released regarding the intent to reward three EPC (Engineering, Procurement & Construction) contracts for the implementation of the "Duqm Refinery" project in the Special Economic Zone of Duqm.
This is one of the major projects of the Sultanate of Oman, involving an investment to be made by the joint-venture between Oman Oil Company and Kuwait Petroleum International amounting to approximately 7 billion dollars, 5 billion of which will be funded by an international market loan. The refinery is scheduled to be operational by 2021, and will have a refining capacity of 230,000 barrels a day.
Saipem International is among the multinational companies which have been assigned the three contracts. Saipem was awarded the third package of the project involving the engineering, procurement and construction of a product storage and export terminal situated in Duqm harbour. It includes eight storage tanks located in the Ras Markaz stocking area and the 80 kilometre pipeline connecting the stocking area to the Duqm harbour. According to media information, the value of the contract amounts to approximately 800 million dollars.
The integrated compound of the refinery is considered to be one of the strategic projects in the Sultanate. According to governmental planning, it should transform the Duqm area into one of the major energy hubs of the region.