Muscat: Following the groundbreaking ceremony of Duqm Refinery held at the project site on April 26, officials have now formally issued a “notice to proceed” (NTP) to the contractors of the three EPC packages worth US$5.75 billion.
The formal issuance of the NTP signifies the start of the construction work of the 230,000bpd refinery project.
The project is expected to be completed and be ready to begin operations 42 months from the issuance of the NTP.
Initially, the contractors will allocate resources to complete detailed engineering design work at their home offices where they will be joined by staff from the Duqm Refinery.
Jacobus Nieuwenhuijze, Project Director of Duqm Refinery, said: “This truly is an exciting and important milestone for all of us, since it not only signifies the start of the construction work but also culminates the efforts put in by stakeholders to have the project reach this stage.”
He added: “The contractors and the project team have prepared themselves thoroughly to ensure a solid start to the project activities.”
The commencement of the construction work of this key project will also trigger other direct and indirect benefits to Duqm and the region.
Duqm Refinery’s EPC scope of work is divided into three separate packages. The scope of EPC 1 includes the process units of the refinery, while EPC 2 consists of the utilities and offsite facilities. EPC 3 includes the product export terminal at Duqm Port, the Duqm Refinery-dedicated crude storage tanks in Ras Markaz and the 80km interconnecting pipeline from these crude tanks to Duqm Refinery.
The contractors for the three EPC packages are EPC Package 1 (Process Units): Joint Venture of Técnicas Reunidas S.A. and Daewoo Engineering & Construction Co. Ltd, EPC Package 2 (Utilities and Offsite): Joint Venture of Petrofac International Limited and Samsung Engineering Co. Limited, and EPC Package 3 (Offsite Facilities): Joint Venture of Saipem SpA and CB&I.
The Duqm Refinery project is a 50/50 joint venture between Oman Oil Company and Kuwait Petroleum International. It is being established at the special economic zone of Duqm. It is a project that would synergise the area of Duqm and make it a viable and strategic energy hub in the region.