Canadian oil company Genoil has partnered with Oman’s Ras Madrakah Petroleum Industry Company (RMPIC) and Beijing Petrochemical Engineering Company, a subsidiary of Yanchang Petroleum International to build a new upgrading refinery in Sultanate.
According to the statement, “The three companies have signed an agreement to develop the project, will consist of the 200,000 bpd refinery in the Port of Duqm, up to nine 500,000 bbl crude oil feedstock storage tanks in Ras Markaz, and an 80 km long, 28” diameter pipe to connect the feedstock tanks to the refinery.” The company stated that the value of the new refinery is $2.4 billion
Port of Duqm, a joint venture between the Omani Government and Port of Antwerp, started operations in late 2012 and has since evolved into a world-class deep-sea port.
As per the agreement, Genoil will license its technology and also provide a process design package, training, and advisory services. Furthermore, it will contribute proprietary catalyst and equipment supply.
Ras Madrakah owns the only private refinery license granted by the government of Oman, while Beijing Petrochemical carry out the feasibility study, front end engineering design (FEED) work, and will be the engineering, procurement, and construction (EPC) contractor, including for the storage tank farms, project offsite facilities including the product export terminal, and other necessary infrastructure. Eight hundred hectares of land have been reserved for the project.
The project is expected to boost the local economy by creating 18,000 employment in the Sultanate of Oman, and it will make use of many existing contractors and local manufacturing partners. Beijing Petrochemical and Yanchang Petroleum Limited are planned to operate the project once it is up and running, as per the company statement.