Duqm Special Economic Zone Authority (SEZAD) has signed a preliminary usufruct agreement with Duqm Refinery and Petrochemicals Industries Company (DRPIC) in Oman
The agreement allows the company access to the project site, covering 900 ha, to carry out field studies, preparatory and clearance works for the proposed refinery, Muscat Daily reported.
DRPIC was established in 2012 as a joint venture between Oman Oil Company (OOC) and International Petroleum Investment Company (IPIC), which is owned by the Abu Dhabi government.
One of the most prominent heavy industry ventures to be set up at SEZAD, the refinery is expected to have the capacity to process around 230,000 bpd from a variety of crude mixtures.
Yahya al Jabri, chief of SEZAD, said that the importance of this agreement marks the launch of heavy industries at SEZAD. He added that the Duqm Refinery will be one of the growth engines for SEZAD with respect to petrochemical industries.
“Petrochemical projects will look to benefit from the products of the refinery and the presence of the refinery will contribute to the development of SEZAD and to the implementation of many SMEs,” al Jabri added.
According to al Jabri, there is an increasing demand for heavy industries and SEZAD is working to provide businesses in the sector with appropriate infrastructure.
Jacobus Nieuwenhuijze, project director of DRPIC, said that the company will start floating tenders for the refinery by first half of 2015.
“We are on schedule on the FEED stage,” said Nieuwenhuijze. “We will start the execution of some civil works most likely in April-May next year.
“Our aim is to award the exploration, production and construction contract by the first half of 2016 and to commission the project in Q4 2019.”
Isam al Zadjali, CEO of OOC, said that the preliminary usufruct agreement with SEZAD would represent one more step towards the commissioning of the Duqm Refinery, which will play a significant role in supporting growth of the national economy.
“As one of the key developments in the sultanate’s energy sector, the refinery will be a major element in positioning Duqm as the next regional hub for hydrocarbon storage, as well as refining and petrochemicals,” he added.
