The Arab Petroleum Investments Corporation (Apicorp) has announced a funding of $100 million for the construction of Duqm Refinery, a joint venture between Kuwait Petroleum International and Oman Oil Company in Oman.
The funds will be delivered as part of a consortium consisting of local and international banks. Of the $100 million, $50 million of Apicorp’s funds are Sharia-compliant and the rest are in conventional tranche. This is also in-line with Apicorp’s commitment to Oman, which has over $380 million committed to the energy sector in the Sultanate
Dr Ahmed Ali Attiga, CEO at Apicorp said: “We are delighted to be working with Kuwait Petroleum International and Oman Oil Company on this prestigious project – Duqm Refinery. As the Arab energy sectors most trusted financial partner, we look forward to further strengthening our existing partnerships with the governments of Kuwait and Oman.”
“Once operational, the refinery will play a significant role in boosting Oman’s exports and will be a key driver for the growth of the region providing investment opportunities for new related projects,” he stated.
Nabil Bourisli, the president of Kuwait Petroleum International and chairman of Duqm Refinery said: “This reflects the trust and confidence of local, regional and international financial institutions in our economic ties that are deeply rooted in history. Our vision is aiming at maximising the value of our natural resources and driving the two countries towards expanding their economic potential, leading to balanced economic growth.”
According to the statement, Duqm Refinery recently celebrated the foundation-stone laying and the commencement of the $5.75 billion construction work for the project. Once completed, it will have the capacity to process around 230,000 bpd of crude oil, of which primary output will include diesel, jet fuel, naphtha, and liquefied petroleum gas. The refinery is located at Al Duqm in the south-east Al Wusta Governorate of the Sultanate of Oman.