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    Duqm liquid berth’s construction to start within a month

    Construction work on the planned $513 million liquid terminal at the Duqm port in the Al Wusta region will start within a month and will be carried out by Royal Boskalis Westminster NV, according to a top-level official in the Special Economic Zone Authority at Duqm (Sezad).

    Royal Boskalis Westminster NV, the Netherland-based dredging and maritime infrastructure services provider, bagged the terminal contract from Sezad in January this year.

    Presently, the Royal Boskalis is working on a detailed engineering design and mobilising equipment and materials for construction work, Lee Chee Khian, chief executive officer of Sezad, told the Times of Oman. “The construction work will take 32 to 33 months to complete.”

    “An initial Front-End Engineering Design (FEED) was carried out by our consultant Worley Parsons at the time of the tender,” he added.

    The liquid terminal, which is linked to the ambitious development of the mega 230,000 barrels per day capacity-greenfield refinery project is currently under development near the port, will be large enough to handle the import and export requirements of the refinery. “This (liquid berth) is in line with the development of the refinery as the refinery needs liquid berth to export finished (petroleum) products.”

    With a quay wall extending for more than one kilometre, there will be enough capacity to accommodate several berths to handle growth in liquid cargoes in the long-term.

    The scope of work includes engineering, design, procurement and construction of a liquid berth terminal. The liquid berth will be operational sometime in 2020, added Khian. Various dredging and civil activities will be executed by Boskalis, which include the deepening of the port basin to a depth of 18 metres, reclamation of new land, construction of a quay wall that is one kilometre long, a double berth jetty island and a stone revetment, the company had stated earlier.

    The dredging scope will be executed by the new mega cutter Helios, which will be taken into service sometime in mid-2017, and a jumbo hopper and medium-sized trailer suction hopper dredger.

    The finance for the liquid berth, Khian said, will be arranged by Sezad from the Oman government (Ministry of Finance).

    Duqm Refinery, the $7 billion-joint venture between the Sultanate’s state-owned Oman Oil Company and Kuwait Petroleum International, is also expected to start operations in 2020.

    Both companies had signed a joint venture agreement last month for building the refinery.

    An Engineering, Procurement and Construction (EPC) contract for the main processing plant of the refinery is expected to be awarded soon. A tender for selecting an EPC contractor for the main project was floated way back in 2015. Also, the land levelling work for the project, which stretches more than 900 hectares, was completed in May 2016.

    There are three main packages for the refinery project—the main processing facility, utilities and a package for building facilities outside the refinery. The third package for work includes storage facilities for fuel, an 80 kilometre-long pipeline between the refinery and a major crude storage facility in Ras Markaz.

    According to the plan, as much as 65 per cent of crude feedstock for the refinery will be from Kuwait, while the remaining 35 per cent will be supplied by the Sultanate.

    Duqm Refinery is aiming to get $5 billion as loan to fund the total cost for the project at $7 billion and initial discussions have already been started for funding the project.

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