Kuwait Petroleum to invest in Oman Oil’s Duqm refinery
Oman Oil Company (OOC), the Sultanates investment arm in the energy and energy related sectors, and Kuwait Petroleum International Ltd. (KPI), the international subsidiary of Kuwait Petroleum Corp. (KPC), have signed a memorandum of understanding (MOU) to cooperate in the development of Duqm Refinery and Petrochemical Complex in the Duqm Special Economic Zone (SEZ) in Oman’s Al Wusta Governorate. This strategic partnership is part of the efforts being made to seek further investment opportunities that open doors to develop major industrial projects in Duqm.
Duqm Refinery project is located in the special economic zone in Al Duqm, in the South East Al Wusta Governorate of the Sultanate of Oman. This gives the project a strategic maritime location and a competitive advantage being in the path of international shipping lines in the Indian Ocean and the Arabian Sea thus easing the process of transport in and out of the region. The refinery once completed will have the capacity to process 230 Mbpd of crude oil that will serve both local and international markets.
The Duqm Refinery and Petrochemical Industries Company was founded in 2012 as a JV between OOC and the International Petroleum Investment Company (IPIC). This partnership has resulted in the completion of substantial work, driven through the project steering committee and board of directors. However, IPIC concluded this year that the proposed new direction of the project, which includes petrochemicals, does not fit its investment strategy and decided to pave the way for new partners to enter the project".
Duqm Refinery will be one of the growth engines for the special economic zone. It will provide development opportunities for new projects that will directly and indirectly interface with the refinery.
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