Construction begins on Oman’s $7bn A'Duqm Refinery project

A'Duqm Refinery and Petrochemical Industries has laid the foundation stone for the A’Duqm Refinery project, a joint venture between Oman Oil Company and Kuwait Petroleum Corporation

A'Duqm Refinery and Petrochemical Industries has laid the foundation stone for the ADuqm Refinery project [image: ONA].
A'Duqm Refinery and Petrochemical Industries has laid the foundation stone for the ADuqm Refinery project [image: ONA].

A'Duqm Refinery and Petrochemical Industries has laid the foundation stone for the A’Duqm Refinery project, located in Oman.

Valued at $7bn (OMR2.69bn), the project is a joint venture (JV) between Oman Oil Company (OOC) and Kuwait Petroleum Corporation (KPC).

Kuwait’s Ministry of Oil, Electricity and Water, Bakheet Shabib Al-Rashidi, described the refinery as the first of KPC's projects in Oman – an indication that there would be other projects in the future, state-run Oman News Agency (ONA) reported.

The refinery was financed through a $4.8bn (OMR1.85bn) loan from international banks, Al-Rashidi revealed.

Speaking at a ceremony held to celebrate the laying of the project’s foundation stone, Eng Essam bin Saud Al-Zadjali, CEO of OCC, noted that the project, 50% of which OCC owns, will raise the investment portfolio of OCC past the $10bn (OMR3.85bn) mark.

Expected to be operational by 2022, the A'Duqm Refinery project will operate with a refining capacity of 230,000 barrels per day when it is completed.

It is the largest JV between two Gulf States in the Special Economic Zone of A'Duqm, according to ONA.

A'Duqm Refinery announced in August last year the awarding of three EPC contracts for the project. The contract for the construction of the refinery’s main processing plants was awarded to a joint venture between Tecnicas Reunidas and Daewoo Engineering & Construction. 

Meanwhile, Petrofac, in a joint venture with Samsung Engineering, won the contract for the engineering, procurement, construction, commissioning, training, and start-up operations of all the utilities at Duqm.

The third package was awarded to Italy's Saipem. It covered the construction of a product export terminal at the Duqm port, dedicated crude storage tanks in Ras Markaz, and an 80km-long pipeline connecting crude tanks with the refinery.

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