Oman Oil Duqm Refinery nears FEED completion
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Duqm Refinery and Petrochemical Industries Corporation (DRPIC), a 50/50 joint venture between the wholly state-owned Oman Oil Company SAOC (OOC or Oman Oil) and International Petroleum Investment Company (IPIC) ,a sovereign fund of Abu Dhabi, is on the way to complete the front end engineering and design (FEED) work for its $ multi-billion project of integrated refinery and petrochemical complex to be built at Duqm, along the Arabian Sea coast, at the center of the Sultanate of Oman.
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As Abu Dhabi sovereign fund, IPIC is recycling oil and gas $ revenues into world-scale projects, preferably providing growth and stability to the Gulf Co-operation Council (GCC) region.
In that respect the Duqm Refinery and integrated petrochemical complex is a perfect target proposed by Oman Oil as it will contribute to Sultanate economical growth in the Al-Wusta Governorate, a region strategically located on the Gulf of Oman to save traffic across the sensitive Strait of Ormuz.
From its central position, Duqm will facilitate the export and import of hydrocarbon products in a region still underdeveloped compared with the north of the country.
The DRPIC joint venture was established in June 2012 by Oman Oil of IPIC.
On March 2014, Oman Oil and IPIC awarded the FEED contract and selected Technip to provide project management consultancy (PMC) for the Duqm Refinery and Petrochemical integrated complex project.
Oman Oil and IPIC pre-qualify Duqm Refinery EPCs
The Duqm Refinery and Petrochemical integrated complex project should be located in the dedicated Duqm Special Economic Zone (SEZ) on the Al-Wusta Governorate coast.
The crude oil to feed the Duqm refinery should be imported from the GCC countries.
Then the refined transportation fuels and the hydrocarbon products issued from the petrochemical complex should be partly consumed by Oman domestic market and partly exported, thus propelling Duqm as a major trading and storage hub in the Middle-East region.
Because of its size, Oman Oil and IPIC has decided to build it up in two phases.
In a first phase, Oman Oil and IPIC will spend $6 billion capital expenditure to build the refinery.
In a second phase, the integrated petrochemical complex should require $9 billion investment.
Designed around 230,000 barrels per day (b/d) capacity the Duqm full conversion refinery should include a:
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- Delayed coker
- Hydrocracker
- Hydrotreater
- Liquid petroleum gas (LPG) treatment
- Kerosene treatment
- Sulphur recovery unit
The ground work is planned to start on early 2015 while Oman Oil and IPIC will send the invitation to bid (ITB) for the engineering, procurement and construction (EPC) contracts for the Duqm Refinery.
In the meantime Oman Oil and IPIC are proceeding to the pre-qualification of the engineering companies for this first phase.
Considering the qualified contractors to submit their tenders on second half 2015, Oman Oil and IPIC should award the EPC contracts on mid-2016 in order to start Duqm Refinery commercial operations by 2019.
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