Construction work on one of Oman’s biggest projects, the $7 billion Duqm Refinery venture, officially kicked off yesterday with the two joint venture partners — Oman Oil Company (OOC) and Kuwait Petroleum International (KPI) — celebrating the groundbreaking on this landmark scheme at Duqm.
The ceremony was held at the project site under the auspices of His Highness Sayyid Haitham bin Tareq al Said, Minister of Heritage and Culture. Also in attendance were Dr Mohammed bin Hamad al Rumhy, Minister of Oil and Gas, and Chairman of Board of Directors of Oman Oil Company, Bakheet Shabeeb al Rashidi, Minister of Oil, Electricity and Water in Kuwait and senior public and private sectors officials from both countries.
The greenfield project, with a capacity to process 230,000 barrels per day (bpd) of crude, has been billed as the largest cross-border GCC investment in the downstream sector. A major petrochemical complex is envisioned downstream of the refinery project.
“Oman Oil Company performs the role of a catalyst to develop industrial hubs and regions in Oman. The Duqm Refinery is one such project that symbolises the effective collaboration between Oman and Kuwait. We believe development of the refinery will support the business landscape in Duqm and will contribute to the creation of an attractive infrastructure for foreign investors, thereby developing the area further and adding jobs to the local economy,” said Isam bin Saud al Zadjali, Chief Executive Officer of Oman Oil Company.
“OOC strives to integrate all its investment projects and aims to maximize value from Oman’s resources through the development of the petrochemical industry,” he added.
“The refinery will mark the beginning of a new era for both companies and will lead to new opportunities in the energy sector. This modern landmark will leverage the energy sector of the Sultanate since it is a combination of integrity, maximization of resources and development, to be laid in a very favourable region. Oman Oil Company and Kuwait Petroleum International will implement joint efforts to manage the refinery, execute its operations and add great value to the project as well as the economy as a whole,” added Nabil Bourisli, Chief Executive Officer and President – Kuwait Petroleum International.