Pact signed for $7bn refinery

By Staff Reporter — MUSCAT: April 10 – Oman Oil Company SAOC (OOC), the Sultanate’s investment arm in the energy and energy related sectors, and Kuwait Petroleum International Ltd (KPI), the international subsidiary of Kuwait Petroleum Corporation (KPC), on Monday signed agreements related to their partnership for the development of Duqm Refinery and Petrochemical Complex. The project, estimated to cost $7 billion, is one of the most important industrial projects at Duqm Special Economic Zone, and is expected to provide 700 to 800 direct and indirect jobs.
The agreement was signed on behalf of OOC by Hilal al Kharusi, Executive Managing Director, and Bakheet Shabib al Rashidi, CEO of KPI, at Al Bustan Palace Muscat; in the presence of a number of ministers, under-secretaries and senior officials from both sides. Commenting on this occasion, Dr Mohammed bin Hamad al Rumhy, Minister of Oil and Gas, Chairman of OOC, stated: “The signing of this agreement reflects the distinguished ties between the Sultanate and Kuwait; and aims to open new horizons for wider economic cooperation to serve the common interests between the two brotherly countries.”
He added, “This strategic partnership is an important step towards developing one of the most promising projects in the energy sector at Duqm Special Economic Zone. We hope that Duqm Refinery will act as an essential catalyst for different industrial sectors development as well as contributing to the economic and social development in the Sultanate in general and Al Wusta Governorate in particular.” Isam al Zadjali, CEO of OOC, commented on this agreement saying: “We are pleased with this strategic partnership with our Kuwaiti partners to progress this vital investment project which serves the common interests and provides promising business opportunities for both sides.

980495“We are also keen to translate our aspirations to develop this project along with other investment projects in the region that will contribute to the national economy. “On this occasion, I would also like to hail the continuous efforts made by SEZAD towards the development of infrastructure facilities and to attract local and international companies to invest in Duqm.”
Nizar al Adsani, Deputy Chairman and CEO of KPC, said: “We hope that the refinery project will be the catalyst and ignition towards the start of similar ventures in the energy sector between GCC countries, where this mega project will ultimately lead towards transforming the Duqm area into one of the most important hubs for energy related industries regionally as well as internationally.”
Bakheet al Rashidi, CEO of KPI, highlighted the importance of the agreement, saying: “The Duqm Refinery project would help turn the Omani area into a world hub for energy industries. It will be managed by two sides; KPI which has ample international experience in mega refinery and petrochemical projects in Europe and Asia, and OOC which has rich experience in the oil related industries.”
Ghanim al Otaibi, KPI’s Vice-President, said that this partnership will strengthen ties between Kuwait and Oman.
He added that it will accelerate efforts to enhance the multilateral trade and economic cooperation between the two countries, in addition to paving the road for realising the development strategies of both sides.
The work related to levelling the site of the refinery, which stretches over 900 hectares, has been completed, as well as laying the foundations for the construction of the refinery as per schedule.
Once operational, the refining capacity will reach 230,000 barrels per day and will produce a number of key refinery products: diesel, jet fuel, naphtha and liquefied petroleum gas.
OOC takes the necessary steps to implement the Company’s growth strategy, striving to integrate all its investment projects, and maximising value from Oman’s resources through the development of the petrochemical industry.