Samsung-Petrofac JV awards $51m Duqm EPC contract to Oman's Galfar
The project's completion is due to be achieved within 23 months, Galfar confirmed
A joint venture (JV) of Samsung and Petrofac has awarded $50.6m (OMR19.5m) an engineering, procurement, and construction (EPC) contract to Muscat-listed Galfar Engineering and Contracting for Oman’s Duqm Refinery.
The JV, acting as the project’s contractor, has awarded the EPC deal for Packages 1 and 3 of the main contract, referred to as EPC Package 2 – Utilities and Off-sites of the Duqm Refinery project.
The sub-contract’s value is subject to adjustment based on measurements and payments as per the priced bill of quantities.
In a missive issued to the Muscat bourse, Galfar said the project’s completion is scheduled to be achieved within 23 months of the sub-contract’s commencement on 7 October 2018.
The statement by Dr Hans Erlings, chief executive officer of Galfar, adds that the deal is “an important contract” for the company.
Worth $7bn (OMR2.69bn), Duqm Refinery is one Oman’s most significant ongoing projects, and will create up to 800 jobs in the next four years as part of a concerted effort to boost in-country value and support local jobs.
During construction, Duqm Refinery will account for a staggering 8% of Oman's gross domestic product, according to a senior Duqm Refinery representative. This figure is expected to drop when the refinery begins operations.
This August, Galfar declared an order book worth $1.2bn (OMR471m) for H1 2018, despite reporting a year-on-year (YoY) decline in revenue and operating profit for the period.
In a statement, Galfar said it had “performed well” in all its key focus areas, “despite facing delays in bidding and award” processes.