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Duqm refinery work to start by year-end: Undersecretary
April 4, 2017 | 5:12 PM
by A E JAMES/[email protected]
The second Oman Downstream Exhibition and Conference was inaugurated on Tuesday at the new Oman Convention and Exhibition Centre. — Supplied picture
 
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Muscat: Oman plans to start work on a state-of-the-art refinery with a capacity to refine 230,000 barrels per day of crude oil towards the end of the year, a top-level official at the Ministry of Oil and Gas told the Times of Oman.

Duqm Refinery, which is a 50:50 joint venture between Oman and Kuwait, is expected to take four years to complete the work, said Salim bin Nasser Al Aufi, undersecretary at the Ministry of Oil and Gas, on the sidelines of Oman Downstream Exhibition and Conference here on Tuesday.

Ready by 2021

“I assume that it will take four years (to complete the work), which means the refinery will be ready by 2021.”



The undersecretary said the government is now evaluating EPC (Engineering, Procurement and Construction) bids submitted by potential contractors for building the refinery in Duqm.

The winning company will be announced after careful evaluation of the bids.

As much as 65 per cent of crude feedstock for the refinery will be from Kuwait, while the remaining 35 per cent will be supplied by the Sultanate.

A shareholder agreement between Oman and Kuwait will be signed on April 10.

Al Aufi further said that the refinery will have associated facilities, which include a gas pipeline, a product pipeline, storage tanks and export terminals. It has not yet been decided whether to build a pipeline from Mina Al Fahal to transport feedstock for Duqm refinery.

“We will build a gas pipeline (to Duqm),” he said.

“All these projects will have to go hand in hand, which is the biggest challenge faced by the Oman Oil Company. How can they finance all these projects at the same time?” added the undersecretary.

Addressing the meeting, Hilal Al Kharusi, executive managing director, Oman Oil Duqm Development Company, said the Duqm refinery will provide ample opportunity to service providers, contractors and students. Duqm will also act as a platform for the future chemical industry.

Duqm Refinery will have 10 plants producing over 20 products, he added.

Sayyid Saud bin Hilal Al Busaidi, minister of State and Governor of Muscat, inaugurated the second Oman Downstream Exhibition and Conference (ODEC) on Tuesday at the new Oman Convention and Exhibition Centre.

Downstream sector

The conference was opened with a keynote ministerial address by Al Aufi, who spoke about the Oman government’s strategy for the downstream sector for the year ahead.

Ahmed Al Jahdahmi, chief executive officer of Orpic, addressed the gathering by discussing the current and future projects of the sector. Al Kharusi spoke about developing Oman as a world-class petrochemical complex.

The conference will be a two-day affair that will be in concurrence with the three-day exhibition and will feature plenary sessions, regional case studies, panel discussions centred on the current major downstream projects in Oman, investments drivers, strategies and opportunities, in-country value (ICV) initiatives, and infrastructure development.

Various segments

The exhibition will showcase over 90 participating companies from 17 countries representing various segments of the downstream sector. It will also feature a China national pavilion.

ODEC, organised by Oman’s biggest exhibitions and conferences organiser Omanexpo and World Refining Association, was launched in 2015 as a platform to support the government’s economic diversification plan to develop non-oil sectors and increase the GDP contribution of these sectors.

The trade event leverages the growth potential and business and investment opportunities arising from the current large-scale multi-million-dollar infrastructure development projects all over the country. It also highlights in-country value and improving local capacity and capability.



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