Oman and Kuwait launch $7bn Duqm Refinery project in Sultanate
Project is the first in Kuwait Petroleum Corporation’s pipeline of projects
Oman Oil Company and Kuwait Petroleum Corporation (KPC) have jointly laid the foundation stone for the $7 billion Duqm Refinery project in the Sultanate – the first of a number of KPC projects in the country.
According to a report by Times of Oman, the Duqm Refinery will focus on the production of diesel, jet fuel, naphtha, Liquid Petroleum Gas (LPG), Sulphur and pet coke as its primary products. It will also seek advanced technology to manufacture clean, high-quality products in compliance with global standards for safety and operation.
Bakheet Shabib Al Rashidi, Kuwait’s Minister of Oil, Electricity and Water, said that the project was the first in KPC’s pipeline for Oman, and that there would be more projects coming up in the future.
“Kuwait supports integrated projects among the GCC countries,” he stated, noting that there were subsequent projects, such as an integrated petrochemical complex with the refinery project.
The launch was held under the patronage of Sayyid Haitham bin Tariq Al Said, Minister of Heritage and Culture, and was also attended by senior officials like Oman Oil Company CEO Essam bin Saud Al Zadjali.
Al Zadjali said that the Duqm Refinery and Petrochemical Industries project was a translation of Oman Oil Company’s efforts to boost oil revenues and attract investments to the sultanate.
He explained that OCC had a 50% of the project, which is expected to be completed in 2022. This was financed by international credit agencies and commercial banks, he said, while also indicating that the project will raise the investment portfolio of OOC, which is expected to exceed $10 billion.
KPC’s chief executive, Nabil Mohammed Borsali said that the Duqm project marked the beginning of a new era in bilateral ties between the two GCC countries, with several prospects opening for the development of the oil sector in both countries.
“The project, which will operate with a refining capacity of 230,000 barrels per day when it is completed, is the largest joint venture between two Gulf states in the Special Economic Zone of Duqm,” he said.
