Duqm Refinery Issues a "Notice to Proceed” to its EPC Contractors

Following the Groundbreaking Ceremony of Duqm Refinery held at their project site on 26 April, officials have now formally issued a “notice to proceed” (NTP) to the contractors of the three EPC packages worth $5.75 billion dollar.

The formal issue of the NTP signifies start of the project schedule of the construction work of the 230,000 bpd Refinery project. The project is expected to complete and be ready for startup 42 months from the issue of NTP.

Initially, contractors will allocate resources to complete detailed engineering design work at their home offices where they will be joined by staff from Duqm Refinery.

Jacobus Nieuwenhuijze, Project Director of Duqm Refinery, commented: “This truly is an exciting and important milestone for all of us, since it not only signifies start of construction work but also culminates the efforts put in by stakeholders to have the project reach this stage.” He further added: “the contractors and the project team have prepared themselves thoroughly to ensure a solid start of the project activities.” The commencement of the construction work of this key project will also trigger other direct and indirect benefits to Duqm and the region.

Duqm Refinery’s EPC scope of work is divided into three separate packages. The scope of EPC 1 includes the process units of the Refinery, while EPC 2 consists of the utilities and offsite facilities. EPC 3 includes the product export terminal at Duqm Port, the Duqm Refinery dedicated crude storage tanks in Ras Markaz and the 80 km interconnecting pipeline from these crude tanks to Duqm Refinery.

The contractors for the three EPC packages are:

EPC Package 1 (Process Units): Joint Venture of Técnicas Reunidas S.A. and Daewoo Engineering & Construction Co., Ltd

EPC Package 2 (Utilities and Offsites): Joint Venture of Petrofac International Limited and Samsung Engineering Co Limited

EPC Package 3 (Offsite Facilities): Joint Venture of Saipem SpA and CB&I.

The Duqm Refinery project is a 50/50 joint venture between Oman Oil Company and Kuwait Petroleum International. It is being established in the special economic zone of Duqm. It is a project that would synergize the area of Duqm and make it a viable and strategic energy hub in the region.