Canadian oil company Genoil is to build a new upgrading refinery in Oman, at a cost of US$2.4 billion (€2.03 billion), with the Ras Madrakah Petroleum Industry Company and Beijing Petrochemical Engineering Company, a subsidiary of Yanchang Petroleum International.
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. An 800 ha site has been reserved for the project. Three crude feedstock agreements are in place for up to 200,000 bpd of crude, as well as three refined product offtake contracts.
The facility, to be built on a greenfield site, will use Genoil Hydroconversion Upgrader (GHU) technology, which was developed by Genoiol to upgrade sour and heavy crudes and bitumen. It is a catalytic hydroconversion technology that uses proprietary mixing devices between hydrocarbons and hydrogen, achieving higher conversion rates at lower temperature and pressures than traditional technologies like delayed coking and conventional hydrotreating and hydrocracking processes. As well as the GHU technology, catalyst and equipment, Genoil will licence its process design package, training, and advisory services.
Ras Madrakah owns the only private refinery licence 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.