Page 13 - DMEA Week 40

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Saipem picks Galfar for Duqm subcontract
Oman’s Muscat securities Market-listed Galfar Engineering and Contracting has won a $2.7m (OMR1m) subcontract from Italian oil and gas contractor saipem to deliver structural steel erection work for pet coke and sulphur storage shelters at Duqm Re nery.
e $7bn (OMR2.69bn) integrated complex that is being developed through a partnership between Oman Oil Co and kuwait Petroleum International in special Economic Zone in Duqm (sezad).
In a stock market missive, Galfar said that as part of the contract – which was awarded by saipem’s Omani branch – it would work on Package 3 covering engineering, procurement, and construction (EPC) works for o site facilities at Duqm Re nery.
Work on the project will commence on 20 november 2019 and is expected to complete on 15 July 2020.
Galfar said that it expected “reasonable income from the contract”.
september this year saw the Omani contractor win a $59.9m (OMR23m) subcontract from saipem to deliver mechanical, electrical, instrumentation, and piping fabrication works for sub-Packages
A and C. Upon completion in 2022, Duqm Re nery is expected to process 230,000 barrels per day of crude oil, primarily producing diesel, jet fuel, naphtha, and lique ed petroleum gas.
ConstrUCtion WeeK online
Small refineries’ fate
uncertain as Dangote
pushes ahead
e fate of many small re nery projects in the
country hangs in the balance while Dangote Industries Limited pushes ahead with its massive project, ’FEMI AsU writes
While 44 re nery licences have been given to private investors, only a few projects, including the one being built by Dangote Industries Limited in Lagos, are underway.
niger Delta Petroleum Resources Limited is the only company that has been able to establish and run a re nery.
It has a 1,000 barrels-per-day re nery
at Ogbelle, Rivers state and it is working to expand the processing capacity to 6,000bpd and later to 11,000bpd.
According to the Department of Petroleum Resources, there are a total of 38 proposed modular re neries with capacity ranging from 5,000 bpd to 30,000bpd, and six conventional plants with a total capacity of 1.35 million bpd.
It said 24 out of the 44 companies were still sourcing funds as of April 2018, some of whose licences to establish had expired, adding that 20 licences were active.
In August, the nigerian Content Development and Monitoring Board said it was providing equity investment for the establishment of two modular re neries in Imo and Bayelsa states.
It said the 12,000 barrels-per-day modular re nery being constructed by Azikel Petroleum Limited in Bayelsa would come on stream in 2021.
e nCDMB said the 5,000bpd modular re nery being built by Waltersmith Re ning and Petrochemical Company Limited in Imo was on track for completion in May 2020.
e national Re neries special task Force, which was set up by the Ministry of Petroleum Resources in 2012, said it examined 35 green eld private re nery licensees/ applicants, and only seven were found to have reasonable potential.
e taskforce said it was evident that most of the applicants for a re nery licence did not have the requisite experience and background in petroleum re ning and marketing.
It said, “ eir technical capability is rather doubtful and their ability to attract the quantum of funds required for re nery projects, running into billions of naira, is questionable.
“Besides, in many instances, potential nanciers evidently insisted on crude supply agreements at rates below international market prices, owing to the prevalent subsidised products pricing regime, as a condition for further consideration of funding applications.”
Aliko Dangote, Africa’s richest man,
is building a re nery with a capacity of 650,000bpd, described as the world’s biggest single-train facility.
e re nery can meet nigeria’s requirement of all liquid products, such as petrol, diesel, kerosene and aviation fuel, and will have a surplus of each of the products for export, according to Dangote Industries Limited.
On July 29, sinopec Corporation announced that the world’s largest atmospheric tower, a piece of equipment that will process crude oil for Dangote re nery, had set sail from China to nigeria.
“It doesn’t pose any threat whatsoever to smaller re neries. e modular re neries will complement it because the 650,000
bpd cannot meet nigeria’s requirement on its own. It might be a threat to people who are bringing in products to nigeria,” the Chairman, Eko Petrochem and Re ning Company, Capt. Emmanuel Iheanacho, told our correspondent.
Iheanacho’s company is working towards building a 20,000bpd modular re nery in Lagos.
In 2017, it announced the signing of a grant of $797,343 by the United states trade and Development Agency for the project.
“We have nished everything we need to do by way of planning. to build a re nery
is not an easy business; it involves a lot of planning, articulation and interaction with government o cials, communities and other
Week 40 10•October•2019
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