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Saipem awards $14m Duqm Refinery contract to Oman's Galfar

Duqum Refinery is one of the largest ongoing construction projects in the sultanate

Duqm Refinery will create 800 jobs over the next four years.
Duqm Refinery will create 800 jobs over the next four years.

Galfar Engineering & Contracting has won Saipem's contract to deliver site preparation work at Ras Markaz for Duqm Refinery, one of Oman's biggest construction projects.

Galfar's $13.9m (OMR5.3m) contract includes site preparation work for offsite facilities at the upcoming 230,000 barrel per day refinery. It's a repeat win for Galfar, which was awarded a contract in Q2 2015 to carry out site preparation work for the $7bn (OMR2.69bn) Duqm Refinery.

The latest contract was awarded on 30 November this year, accepted on 2 December, and confirmed on the Muscat Securities Market the following day.

READ: Oman's $7bn Duqm Refinery to create 800 jobs

Galfar's chief executive officer, Dr Hans Erlings, said the contract would deliver a “reasonable income” gain. 

Site activation work is set to begin imminently and its scope will be completed on 30 April, 2019.

Loss-making engineering, procurement, and construction (EPC) heavyweight Saipem of Italy is one of six companies delivering work for Duqm Refinery under a trio of EPC packages.

EPC Package 1, which covers process units, will be delivered by a joint venture (JV) between Técnicas Reunidas and Daewoo Engineering & Construction. A JV of Petrofac and Samsung Engineering Corporation is working on the utilities and offsite package, while CB&I is Saipem's JV partner for EPC Package 3.

READ: Oman's Duqm Refinery closes record $4.6bn deal

Meanwhile, Duqm Refinery agreed the biggest project finance agreement in Oman's history last month, securing $4.6bn (OMR1.7bn) in funding for the megaproject that will produce crude oil, diesel, jet fuel, and liquefied petroleum gas.

The project is central to Omani efforts to stimulate economic growth and create local jobs. Up to 800 roles will be created in the next four years by the project, which will account for up to 8% of Oman's gross domestic product growth during development.

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Construction Week - Issue 743
Jun 01, 2019