DRPIC – Duqm Refinery and Petrochemical Complex – Al Wusta - Project Profile
"DRPIC – Duqm Refinery and Petrochemical Complex – Al Wusta - Project Profile" contains information on the scope of the project including project overview and location. The profile also details project ownership and funding, gives a full project description, as well as information on contracts, tendering and key project contacts.
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The Duqm Refinery and Petrochemical Industries LLC (DRPIC), a joint venture between Kuwait Petroleum International Ltd. (KPI) and Oman Oil Company (OOC), is undertaking the Duqm Refinery and Petrochemical Complex project in Al Wusta region, Oman.
The project involves the construction of a refinery and petrochemical complex on 809ha of land.
The project will be developed in two phases:
The first phase includes the construction of a 230,000 barrels per day (BPD) grassroots merchant export refinery to process heavy crude and naphtha-based products on 900ha of land. The plant will utilize delayed coking technology for a bottom of the barrel processing. It will also incorporate licensed technologies for hydrocracking, hydrotreating, LPG treatment, kerosene treatment and sulphur recovery. The project will include the construction of a processing unit, oil retailing units, the laying of pipelines, and the installation of a distillation unit. The investment for the phase is expected to be US$6,000 million.
The second phase will include the construction of a petrochemical complex with an investment of US$9,000 million in future.
The first phase of the project will be financed by the Special Economic Zone Authority in Duqm (Sezad) and the second phase of the project will be financed by Duqm Terminal.
The OOC and IPIC signed a memorandum of understanding (MoU) for conducting the feasibility study and implementation of the project. The company will look at foreign investments for financing the project.
Amec Foster Wheeler Plc has been appointed as front-end engineering design work (FEED) contractor; Credit Agricole as financial advisor; Allen & Overy as legal advisor; WoodMac and HIS Consultants AG as the marketing consultant; Engineers India Ltd as a legal consultant; and Marsh Oman LLC as the insurance consultant.
KBC Advanced Technologies was awarded feasibility study contract in the first quarter of 2010 and feasibility study was completed in April 2011.
In June 2012, IPIC and OOC signed an agreement to form a joint venture company DRPIC.
On August 6, 2012, Shaw Energy and Chemicals and Technip were appointed as project management consultants. The preliminary engineering design works were undertaken by an in-house division of Technip (formerly Shaw Energy and Chemicals Ltd).
In August 2014, DRPIC floated a tender to lay the groundwork for the construction of the project. The work involves digging (over 14m).
In September 2014, DRPIC invited engineering, procurement, and construction (EPC) contractors to participate in the pre-qualification process for the first phase with February 15, 2015, as submission deadline. Later, the deadline was extended to March 12, 2015. The tender pre-qualification bids were invited under two packages.
The package I include process units and package II includes utilities and offsite works to support the refinery.
In November 2014, DRPIC has signed a preliminary agreement with SEZAD to implement the first phase of a project. The scope of the work includes field studies, preparatory and clearance works for the refinery.
In May 2015, Galfar Engineering and Contracting SAOG was appointed as contractor for the site preparation work.
In November 2015, DRPIC announced seven pre-qualified bidders for both the packages of the first phase of the project. The prequalified bidders are:
- JV of CB&I BV, The Hague, and Taiwan’s CTCI Corp., Taipei. - JV of South Korean firms Daelim Industrial Co. Ltd., Hyundai Engineering & Construction Co. Ltd., and Hyundai Engineering Co. Ltd., all of Seoul. - Fluor Corp. subsidiary Fluor Transworld Services Ltd., Hoofddorp, Netherlands. - JV of JGC Corp., Yokohama; South Korea’s GS Engineering & Construction Corp., Seoul; and Italy’s Saipem SPA, Milan. - JV of Petrofac International Ltd., Sharjah, United Arab Emirates; South Korea’s Samsung Engineering Co. Ltd., Seoul; and Chiyoda Corp., Yokohama. - South Korea’s SK Engineering & Construction Co. Ltd., Seoul. - JV of Tecnicas Reunidas SA, Madrid, and South Korea’s Daewoo Engineering & Construction Co. Ltd., Seoul.
On November 22, 2015, DRPIC invited tenders from the pre-qualified bidders for lump-sum turnkey (LSTK) contract on EPC basis for both the packages of the first phase with a submission deadline of February 27, 2016. Later, the deadline was extended to March 21, 2016.
On March 30, 2016, the below-shortlisted companies submitted their bids for both the packages:
- JV of CB&I BV, The Hague, and Taiwan’s CTCI Corp., Taipei. - JV of JGC Corp., Yokohama; South Korea’s GS Engineering & Construction Corp., Seoul; and Italy’s Saipem SPA, Milan. - JV of Petrofac International Ltd., Sharjah, United Arab Emirates; South Korea’s Samsung Engineering Co. Ltd., Seoul; and Chiyoda Corp., Yokohama. - JV of Tecnicas Reunidas SA, Madrid, and South Korea’s Daewoo Engineering & Construction Co. Ltd., Seoul.
Fluor Corp. was pre-qualified for both the packaged but later pulled out due to unknown reasons.
On May 23, 2016, an agreement was signed between Sezad and Oman Wanfang LLC to build the project.
On November 15, 2016, four companies including Amec Foster Wheeler (UK), Bechtel (US), Fluor (US) and Technip (France) issued bids for project management consultancy (PMC) contract.
On November 10, 2016, site preparation works on the project were completed.
On November 10, 2016, Kuwait Petroleum International Ltd. (KPI), a subsidiary of Kuwait Petroleum Corporation signed a memorandum of understanding (MoU) with OOC for the project development and replaced International Petroleum Investment Company (IPIC).
KPI and OOC have finalized partnership for the development in April 2017.
In May 2017, Qurum Business Group (QBG) has been selected by the Special Economic Zone Authority at Duqm (SEZAD) to undertake the construction of a utilities corridor for the construction of a grassroots refinery.
On August 7, 2017, DRPIC has awarded US$2,000 million contracts to JV of Petrofac and Samsung Engineering for the first phase of the project. The scope of work includes engineering, procurement, construction, commissioning, training, and start-up operations for all the utilities.
Construction activities are expected to commence subjected to financial closure and full notice to proceed from DRPIC. Construction is expected to complete in the fourth quarter of 2021.
The project involves the construction of a 230,000BPD crude oil refinery and a petrochemical complex in Duqm, Oman.
The US$25,000 million project includes the following:
1. Construction of a processing unit
2. Construction of oil retailing units
3. Construction of on-site pipelines
4. Construction of storage tanks
5. Construction of vacuum chambers
6. Construction of a packaging unit
7. Installation of a distillation unit
8. Installation of related machinery and equipment
9. Installation of temperature control units and related facilitiesReasons To Buy