MUSCAT -- Preliminary engineering design work on a giant refinery complex at Duqm has commenced, marking a key step in the development of, among other things, a major petrochemicals hub on Oman's Wusta coast. According to an official source at Duqm Refinery and Petrochemical Industries Company (DRPIC), which is spearheading the estimated $6 billion scheme, the preliminary design will provide the groundwork for the all-important Front End Engineering Design (FEED) due to be tendered out by around the end of this year, or early in 2013.

DRPIC is a 50/50 joint venture of Oman Oil Company (OOC), a wholly Omani government owned energy investment vehicle, and IPIC, a commercial entity owned by the Government of the Emirate of Abu Dhabi. The JV is overseeing the development of 11.5 million tonnes per annum (230,000 barrels per day) grassroots refinery at the Duqm Special Economic Zone, to be followed by investments in downstream petrochemical projects in the second phase.

It is understood that the preliminary engineering design is being primarily undertaken in-house by DRPIC's newly appointed Project Management Consultant, Shaw Energy and Chemicals Limited (acquired recently by French oilfield services giant Technip). Their appointment as Project Management Consultant, along with Christopher Wszolek as Project Director, was formally announced by DRPIC last month. The latter is a veteran of the international refining and petrochemicals industry with over three decades of experience, including the last 20 years as Senior Project Manager at Saudi Aramco.