Petrofac and Daelim awarded $2.1bn refinery contract

Gas and Petroleum companies Petrofac and Daelim have been awarded a $2.1bn (£1.3bn) contract by Oman Oil Refineries and Petroleum Industries Company (ORPIC). The deal is a 50/50 joint venture between the companies.

The contract is for engineering, procurement, construction and start-up commissioning services at the Sohar refinery, located 230km north west of Muscat. The deal includes improvements to the existing site as well as additional refining units.

President and CEO of Daelim's overseas business development commented

"Combining our strengths with those of Petrofac provided a compelling and competitive proposal for the project. As one of our core markets, we have extensive experience in the Middle East and are delighted to be taking that expertise into Oman for ORPIC.

The refinery was commissioned in 2006 and is anticipated to increase current output by more than 70 per cent when the improvements are completed.