Petrofac awarded $2bln Duqm refinery project

Petrofac awarded $2bln Duqm refinery project

Aug 06, 2017
3 min read
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Petrofac, in a 50/50 joint venture with Samsung Engineering, said it was awarded a US$2 billion contract with Duqm Refinery and Petrochemical Industries LLC (DRPIC) in the southern part of Oman.

Work on the 47-month project will commence shortly, subject to financial closure and full notice to proceed from DRPIC, the British oilfield services company said. 

Petrofac’s and Samsung’s scope of work includes engineering, procurement, construction, commissioning, training and start-up operations for all the utilities and offsites at Duqm.

The Duqm refinery in Oman is being developed over 2,000 acres and is expected to have a capacity of 230,000 barrels of oil per day when completed, Petrofac said.

“This significant project represents our twelfth in the country and serves to reinforce Petrofac’s commitment to one of our core markets; one in which we have been present since 1988,” said E Sathyanarayanan, group managing director, Engineering & Construction. “Furthermore, it provides a valuable opportunity for us to continue to increase in-country value through engaging with the local supply chain and recruitment of local resources. We are very much looking forward to working with Samsung on this project and growing our relationship with DRPIC.”

In June, the company secured an agreement with Oman's leading oil exploration company, Petroleum Development Oman, to provide engineering and construction management services for its oil and gas projects.

Duqm Refinery, which is part of Duqm Special Economic Zone, awarded three packages for its planned 230,000 barrels-a-day (b/d) refinery. Samsung and Petrofac won package two, the U & O (Utilities & Offsites). The U&O package consists of a utility production facility that produces water, air, steam and electricity essential to the plant, a tank that stores crude oil before and after the refinery, and a sewage treatment facility. The project, which will be executed on an EPC turnkey basis, is expected to be completed in 2021.

This is Samsumg Engineering's first Oman project. 

"Samsung Engineering has already accomplished several large U & O projects. We will be able to successfully complete this project and further strengthen our market presence in the GCC, including Oman," said Choong Heum Park, president and CEO of Samsung Engineering.


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