$7b Duqm Refinery foundation stone laid

The foundation stone for $7 billion Duqm Refinery Project, a joint venture between Oman Oil Company (OOC) and Kuwait Petroleum Corporation (KPC), was laid on Thursday under the patronage of His Highness Sayyid Haitham bin Tariq Al Said, Minister of Heritage and Culture.

Eng. Essam bin Saud Al Zadjali, CEO of OOC, said that the project would create between 900 and 1,000 direct job opportunities.

Bakheet Shabib Al Rashidi, Kuwait’s Minister of Oil, Electricity and Water, said the project was the first of KPC’s projects in the Sultanate, indicating that there would be more projects coming up in the future.

He added that Kuwait supports integrated projects among the GCC countries, noting that there are subsequent projects, such as integrated petrochemical complex with the refinery project.

He said an integrated financing for Duqm Refinery project had been obtained with a loan of $4.8 billion from international banks.

Speaking at the function, Eng. Essam, said Duqm Refinery and Petrochemical Industries project is a translation of OOC’s efforts to boost oil revenues and attract investments to the Sultanate.

He told reporters that 50 per cent of the project, which is expected to be completed in 2022, is the share of OOC and was financed by the international credit agencies and commercial banks, indicating that the project will raise the investment portfolio of OOC, where it is expected to exceed $10 billion.

He added that the marketing plan at the start of operation includes the use of 50 per cent of the refinery products in the petrochemical industry complex, adding that 65 per cent of oil from Kuwait and 35 from the Sultanate will be used.

Nabil Mohammed Borsali, CEO of KPC said Duqm Refinery Project marks the beginning of a new era in the bilateral ties and opens up great prospects for the development of the oil sector in the two countries.