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OOC and IPIC approved financing for Oman Duqm Refinery

Technip/Shaw Energy and Chemicals to provide PMC

The Oman State wholly-owned Oman Oil Company (OOC) and the Abu Dhabi sovereign fund International Petroleum Investment Company (IPIC) have approved the location and the financing for their joint venture Duqm Refinery and Petrochemical Industries Company (DRPIC) project.

The joint venture Duqm Refinery and Petrochemical Industries Company (DRPIC) was established in June 2012 on a 50/50 basis of interests between OOC and IPIC to support $6 billion refinery project to be built in the port of Duqm, on the west coast of Oman.

This greenfield refinery and petrochemical complex will be installed with other heavy duty industries in the Duqm Special Economic Zone (SEZ) to be accommodated in the port of Duqm.

DRPIC is planning to build in:

 – First phase: a refinery with a capacity of 230,000 b/d (11.5 million t/y) of crude oil

 – Second phase petrochemical complex fed by the refinery.

As there is no crude oil pipeline supplying Duqm, the refinery should receive its feedstock from imported crude oil by the sea and should ship out its refined products and later its petrochemicals also by the same way.

Designed as a commercial import-export refinery and petrochemical complex, the Oman Oil Company and IPIC Duqm refinery project will require large storage facilities.

OOC and IPIC to add Liquid Jetty to Duqm Refinery

The Duqm refinery project will be integrated in a 900 hectares site northern Port of Duqm to be linked to a projected Liquid Jetty on-and-offloading facility by an inlet and outlet pipelines system

The Liquid Jetty project will be operated by another joint venture, the Duqm Petroleum Terminal Company (DPTC), between the Port of Duqm Company and the Oman Oil Company.

In this joint venture for the Liquid Jetty, the working interest are shared between:

 – Oman Oil Company (OOC) 90%, the operator

 – Port of Duqm Company 10%

The Liquid Jetty project will have a storage capacity of 150,000 t.

The Oman Oil Company is proceeding itself to the feasibility study of the two projects.

In parallel, OOC and IPIC awarded the Project Management Consultancy (PMC) contract for the Duqm Refinery and Petrochemical complex to the Shaw Energy and Chemicals.

Previously a separate company well known as Stone and Webster, the Shaw Energy and Chemicals Division from the Shaw Group had been spin off and taken over by the french engineering company Technip.

Then the remaining part of the Shaw group was acquired by the American CB&I.

With the appointment of Technip/Shaw Energy and Chemicals as PMC, OOC and IPIC gives the signal to move ahead with the Duqm refinery project and asked Technip/Shaw Energy and Chemicals to complete the feasibility study they had initiated.

In this perspective, the joint venture Duqm Refinery and Petrochemical Industries Company (DRPIC) pre-qualified eight engineering companies for the Front End Engineering and Design (FEED) contract:

 –  CB&I

 – Fluor

 – Foster Wheeler

 – Jacobs Engineering

 – JGC

 – KBR

 – Shaw Energy and Chemicals

 – Technip

The call for tender for the FEED should be released before the end of 2012 to be awarded on early 2013.

On this schedule, Oman Oil Company (OOC) and IPIC are planning to open the first phase of the Duqm Refinery and Petrochemical complex and the Liquid Jetty facilities by 2017.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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