Oman updates plans for grassroots refinery

Duqm Refinery and Petrochemical Industries Co. LLC (DRPIC), Muscat, a joint venture of state-owned Oman Oil Co. and the United Arab Emirates’ International Petroleum Investment Co. (IPIC), has completed prequalification for seven applicants to submit tenders for design and construction of a grassroots 230,000-b/d refinery to be located in Oman’s Duqm Special Economic Zone (SEZAD) in Duqm.

A combination of joint ventures, alliances, and sole entities that include 15 international companies, the applicants are now cleared to submit bids for engineering, procurement, and construction (EPC) of the proposed refinery, DRPIC said.

A total of two EPC contracts will be awarded for the project, including a larger package for all equipment and structures required for main crude oil processing units, and a second package that covers all supporting installations, utilities, tankage and buildings, according to DRPIC.

While it did not disclose identities of the seven preapproved entities, DRPIC said it plans to award both EPC packages within the coming year.

A timeframe for planned startup of the refinery, however, has yet to be revealed.

Earlier in the year, DRPIC awarded Galfar Engineering and Contracting SAOG, Muscat, a contract for the refinery’s site preparation work, which began during second-quarter 2015 and is scheduled to be completed in second-quarter 2016, DRPIC said in a May 3 release.

Designed primarily for production and recovery of naphtha, jet fuel, diesel, and LPG, the refinery will include units for hydrocracking, hydrotreating, delayed coking, sulfur recovery, hydrogen generation, and Merox treating, according to DRPIC’s website.

Contact Robert Brelsford at rbrelsford@ogjonline.com.

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