Duqm refinery project package 2

Samsung Engineering has won a contract worth US$2 billion with the Duqm Refinery Petrochemical Industries Company LLC (DRPIC) in Oman.

The Korean firm said it has received an ITA (Intention To Award) from DRPIC for the Duqm refinery project package 2 - Utilities & Offsites, located in southern Oman. Samsung Engineering has won this US$2 billion project in a 50/50 joint venture with Petrofac, a British firm.

Oman’s Duqm Refinery, which is part of Duqm Special Economic Zone, awarded three packages for its planned 230,000 barrels-a-day (b/d) refinery. Samsung and Petrofac won package two, the U & O (Utilities & Offsites). The U&O package consists of a utility production facility that produces water, air, steam and electricity essential to the plant, a tank that stores crude oil before and after the refinery, and a sewage treatment facility. The project, which will be executed on an EPC turnkey basis, is slated to be completed in 2021.

With this order, Samsung Engineering was able to reach two goals in one strike - the foray into the Omani market for the first time and the acquisition of a new client in DRPIC. Especially acquiring DRPIC as a client is a major achievement, since DRPIC is a joint venture between Oman Oil Company (OOC) and Kuwait Petroleum International (KPI), who invest in refinery and petrochemical complexes.

As a result, Samsung Engineering expects to gain a promising position in the potential petrochemical project market, which is expected to receive orders next to oil refining. In addition, Samsung Engineering completed the final puzzle of winning contracts in all the Gulf Cooperation Council (GCC) countries with entering Oman.

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Samsung Engineering has partnered with Petrofac in this mega project to allocate risks and strengthen business performance. This JV can further benefit from Petrofac’s rich project experience in Oman since Samsung and Petrofac have already teamed up with KNPC's Clean Fuel Project (CFP) in Kuwait, will be able to fully demonstrate their collaboration know-how in this project.

An official of Samsung Engineering said, "Samsung Engineering has already accomplished several large U & O projects. We will be able to successfully execute this project and further increase our market presence in the GCC, including Oman I

In December 2009, Samsung Engineering began to work on the extremely large Takreer RRE project, which was worth 10 billion dollars. It was awarded by Takreer, a subsidiary of the Abu Dhabi National Oil Company (ADNOC) of the UAE. The project aimed to increase the daily capacity of the existing refinery plant at the Ruwais Refinery Complex from 400,000 barrels to 810,000 barrels.

Samsung Engineering had already displayed excellent project management capabilities over the course of various projects executed in the UAE, such as the Borouge 2 OCU and Fertil-2 projects. In recognition of this, the project owner awarded Samsung Engineering the Package #3 (utilities and offsites) among seven packages, which made up the RRE project.

Samsung Engineering not only took charge of producing and supplying the utilities necessary to operate the plant - including steam, industrial water, air, gas, and nitrogen - but also served as an interface management company to coordinate all packages. Samsung Engineering’s successful completion of this project led to the award of additional projects from the owner, including the Shah gas project and the Takreer CBDC (carbon black & delayed coker) project.

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