Signing five agreements for the establishment of the Duqm Integrated Power and Water Plant

February 01, 2019

  • A vital project on 45 hectares
  • SEZAD grants the new company usufruct of land for 25 years
  • Signing a long term service agreement with Siemens for maintenance of turbo engines
  • Awarding EPC contract of plant to a consortium of international companies
  • Signing two agreements to establish a high voltage line from the plant to Ras Markaz 
  • The project supports OOC's vision to develop traditional and renewable power generation facilities in Oman
  • Commissioning of plant begins in Q3 2020 with an investment cost of USD 480 million

Duqm Power Company (DPC) the joint venture between the Centralized Utilities Company (Marafiq) and Gulf Pacific Holdings (Thailand) (45% partner), has signed five agreements for the construction of the Duqm Integrated Power and Water Project (DIPWP).

The ceremony, which was held in January 2019, included the signing of the land usufruct agreement for a period of 25 years for the construction of an integrated power and water plant in the Economic Zone at Duqm. The agreement was signed on behalf of SEZAD by HE Yahya bin Saeed Al Jabri, Chairman of the Board and by Al Duqm Power Company (DPC) Eng. Essam Bin Saud Al Zadjali, CEO of Oman Oil Company.

Eng. Sultan bin Hamad Al Bartmani, acting CEO of Oman Gas Company, and Eng. Abdullah Bin Mohammed Al Hashmi, General Manager of (Marafiq) signed a long-term service agreement with Germany Siemens for 25 years to maintain the industrial turbines, steam turbines and control systems plant.

Engineering, Supply and Construction

DPC have entered into a Lump Sum Turnkey agreement for DIPWP with an International Consortium comprising Alghanim International General Trading & Contracting Company W.L.L (Kuwait); Cobra / Tedagua (Spain) and Sojitz Corporation (Japan) who are recognized as leading EPC contractors in the Power and Water Industry.

Separately DPC has entered into agreements for the RMT package with Zawawi Powertech; a leading Omani transmission contractor with extensive experience in similar projects for the EPC works, and with Mott Macdonald Oman for PMC services.

Abdullah Al Hashimi, Project Director of Marafiq, commented: “I am delighted to announce this significant milestone achievement for all the parties involved, the thanks go to our shareholders, employees, stakeholders and authorities who support us all the way since inception and at  different stages, to help reach our vision of becoming a Utilities provider of choice..  

As the Power and Water pillar of Oman Oil group; Marafiq is committed to developing and operating state of the art facilities, and providing reliable, cost effective solutions to industrial customers utility needs in the SEZAD. 

A vital project

The Usufruct agreement with SEZAD covers some 45 Ha of land split into 3 main plots for the DIPWP project; Seawater Intake and Outfall under DPC, and Space for future expansion of Power and Water Facilities by Marafiq. The land is located adjacent to the massive Duqm Refinery and Petrochemical complex, in the heavy industrial zone.

The ingredients of the project

The world class DIPWP Package scope includes the design, procurement, construction, testing, commissioning, completion and handover for operation of a new fully integrated NG fired 326MW installed capacity CCGT Power Generation plant; 36,000m3/day SWRO Desalination plant, with associated Seawater Intake/ Outfall and Support facilities for the complex. Associated to DIPWP is an 80KM 132Kv OHL Transmission system and 132kv/33kv Substation complex to connect with Oman Tank Terminal Company (OTTCO) at Ras Markaz. (RMT Package)

Investment cost

The DIPWP project is valued at some $450Million and duration is 46 Months from NTP; work will be carried out at Contractor offices in Europe, Kuwait and Oman. The plant is scheduled for early operation in Q3 2020 and full Commercial Operation in 2022.

Providing integrated central services

“The project was initiated to support Oman Oil Company’s investments in the strategic location of Duqm and to act as a centralized utilities provider for our future projects and for the zone whilst contribute for Duqm Special Economic Zone developments and creating jobs and economy” said Eng. Isam bin Saud Al Zadjali, Chief Executive Officer of Oman Oil Company. 

Sultan Al Burtmani, Acting Executive Managing Director of Oman Gas Midstream Business group ; The midstream pillar of Oman Oil Company business which includes Power and Water, added: “The project is one of its kind based on a centralized utilities business model and by being an independent outsourced utilities provider to Duqm Refinery, a major cornerstone  project in the zone.  This project will definitely add value to our Infrastructure portfolios and form an integral part of the OOC pillars”.