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Saipem picks Oman's Galfar for $3m Duqm Refinery subcontract

Omani contractor to deliver structural steel erection work for pet coke and sulphur storage shelters under EPC Package 3

Omans Duqm Refinery will be completed in 2022.
Duqm Refinery
Omans Duqm Refinery will be completed in 2022.

Oman’s Muscat Securities Market-listed Galfar Engineering and Contracting has won a $2.7m (OMR1m) subcontract from Italian oil and gas contractor Saipem to deliver structural steel erection work for pet coke and sulphur storage shelters at Duqm Refinery, a $7bn (OMR2.69bn) integrated complex that is being developed through a partnership between Oman Oil Co and Kuwait Petroleum International in Special Economic Zone in Duqm (Sezad).

In a stock market missive, Galfar said that as part of the contract – which was awarded by Saipem’s Omani branch – it would work on Package 3 covering engineering, procurement, and construction (EPC) works for offsite facilities at Duqm Refinery.

Work on the project will commence on 20 November 2019 and is expected to complete on 15 July 2020.

Galfar said that it expected “reasonable income from the contract”.

September this year saw the Omani contractor win a $59.9m (OMR23m) subcontract from Saipem to deliver mechanical, electrical, instrumentation, and piping fabrication works for Sub-Packages A and C.

Upon completion in 2022, Duqm Refinery is expected to process 230,000 barrels per day of crude oil, primarily producing diesel, jet fuel, naphtha, and liquefied petroleum gas.

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Construction Week - Issue 750
Sep 30, 2019