Samsung-Petrofac JV in line for $2bn Oman refinery contract
Joint venture receives ‘intention to award’ notice from Duqm Refinery Petrochemicals Industries Company
Samsung Engineering and Petrofac, in 50/50 joint venture (JV), are to be awarded a refinery project contract in Oman worth $2bn. The refinery is spread across a site of 2,000 acres, and work on the 47-month project is expected to commence soon.
The Samsung/Petrofac JV will work on a utility facility that will produce the water, air, steam and electricity needed to operate the refinery, as well as crude oil storage tanks and a sewage treatment facility. Samsung said it expects the contract will be complete in 2021.
Choong Heum Park, president and CEO of Samsung Engineering said, “We will be able to successfully complete this project and further strengthen our market presence in the GCC, including Oman.”
The Korea-based firm said that this is the first major contract in Oman, and its first for DRPIC. DRPIC is a joint venture between Oman Oil Company (OOC) and Kuwait Petroleum International (KPI), which invests in refinery and petrochemical complexes.
E Sathyanarayanan, managing director of Petrofac’s Engineering & Construction group said: “The contract provides a valuable opportunity for us to continue to increase in-country value through engaging with the local supply chain and recruitment of local resources.”
Oman’s Duqm Refinery is part of the Duqm Special Economic Zone, and has awarded three packages for its planned 230,000 barrels-a-day refinery.
