Petrofac, Daelim to help expand key Oman refinery

A 50-50 joint venture of Petrofac and Korean-based Daelim Industrial Co. has been awarded a 36-month engineering, procurement and construction (EPC) contract by Oman Oil Refineries and Petroleum Industries Company (ORPIC), officials said on Monday.

The contract value is worth $2.1 billion.

Located in the Sohar Industrial Area, 230 km northwest of Muscat, the scope of work encompasses engineering, procurement, construction, start-up and commissioning services at the refinery.  

The contract includes improvements at the existing facility as well as the addition of new refining units.

The refinery was originally constructed and commissioned in 2006, and ORPIC is now investing in improvements at the site to enhance the current production capacity. When complete, it is anticipated that the revamped facility will increase current output by more than 70%.

"Partnering with Daelim to deliver this project leverages our respective delivery capability for the refinery market, complementing our existing track record," said Subramanian Sarma,managing director of Petrofac's onshore engineering and construction business. 

"We have also been executing projects in Oman since 1988, having a detailed appreciation for the operating environment. ORPIC is a new customer for us and we look forward to strengthening our relationship as the project progresses.”

The specific capacity of the upgraded refinery was not disclosed.

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