As part of the contract, both the companies, in a 50/50 joint venture, will provide engineering, procurement, construction, start-up and commissioning services to the refinery, situated in the Sohar industrial area, 230km North West of Muscat.
The contract also includes improvements to the existing facility and addition of new refining units.
The refinery, which was constructed and commissioned in 2006, is expected to increase current output by 70%, after completing the improvements.
Petrofac onshore engineering and construction business managing director Subramanian Sarma said the company has been executing projects in Oman since 1988.
Daelim Industrial president and CEO CK Lee said, "Combining our strengths with those of Petrofac provided a compelling and competitive proposal for the project."
