Duqm Refinery and Petrochemical Industries Co. officially broke ground with its US$7 billion refinery. A ceremony was held at the project site to mark the launch of construction work for the project.
The project is considered the largest cross-border GCC investment in the downstream sector. It is also planned to be a cornerstone for downstream projects in the future.
The strategic partnership between Oman Oil Co. and Kuwait Petroleum International will open doors to opportunities for other businesses in Duqm that can cater to auxiliary needs of the refinery. It will extend towards new horizons that will drive wider economic cooperation to serve the common interests between Oman and Kuwait.
Duqm Refinery will be a world-class oil refinery that uses advanced technology. It will manufacture clean, high-quality products in compliance with global standards for safety whilst striving to achieve the highest operational standards. The refinery will bolster the energy industry of the Sultanate by strengthening the supply and production of diesel, Jet fuel, naphtha, LPG, sulfur and petcoke as its primary products.
Approximately 900 hectares of site is prepared to construct the Duqm Refinery. The scope of work includes three EPC packages. The first is the process unit of the refinery, whilst the second includes utilities and offsite facilities. The EPC package three consists of the product storage and export terminal in Duqm, crude storage tanks in Ras Markaz and the 80 km crude pipeline from Ras Markaz to the Refinery complex. This project is amongst Oman’s most significant undertakings to date in the energy and petrochemical field, with the potential to serve as the springboard for Duqm’s planned transformation into one of the largest industrial and economic hubs in the region.
“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 Eng. Isam bin Saud Al-Zadjali, CEO of Oman Oil Co.
“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, maximisation of resources and development, to be laid in a very favourable region. Oman Oil Co. 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,” said Nabil Bourisli, CEO and President of Kuwait Petroleum International.
Duqm Refinery is set to drive the growth of the Special Economic Zone Authority of Duqm (SEZAD) through development of new projects. Different ventures will born from the refinery’s products as well as render diverse logistic services. The project will add substantial value to Duqm as a brand whilst introducing new industries to the area.