Oilfield services provider Petrofac has landed a £1.3billion deal to provide engineering, procurement and construction work for Oman’s oil refinery.
The deal, a 50/50 venture with Korean firm Daelim Industrial, will see Petrofac working on the engineering, construction and start-up of the refinery at Sohar, 230km north-west of Muscat.
The refinery, originally built in 2006, is to undergo major improvement works to increase its output by more than 70% – around another 60,000 barrels a day.
“We have also been executing projects in Oman since 1988, having a detailed appreciation for the operating environment,” said Petrofac managing director Subramanian Sarma.
“ORPIC is a new customer for us and we look forward to strengthening our relationship as the project progresses.”
The 36-month contract will see the companies working on the addition of new refining units, along with the improvement work to the existing plant.
The deal comes after Petrofac completed the Kauther depletion compression project in the country for the Oman government.