Big steps taken to boost energy sector in Duqm
n line with its efforts to develop oil and gas projects, and industries associated with these two vital sectors that constitute the country’s bulk of national income, the Ministry of Oil and Gas (MOG) has signed many memorandums in the last decade for the new exploration zones to be set for the future.
These (MoUs) have great concern for establishing more industrial projects of interest to the oil and gas sectors whether through domestic or foreign investments.
A few months ago, Oman Oil Company (OOC) and Kuwait Petroleum International Ltd (KPI) signed an MoU to cooperate in the development of Duqm Refinery and Petrochemical Complex in the Special Economic Zone at Duqm (SEZAD) at a total cost of $7 billion. The MoU includes construction of two projects: Duqm Refinery and Petrochemical Complex, which will be implemented after completion of the refinery.
This project is one of the largest joint investment projects in SEZAD. The MoU was signed with the attendance of officials from both countries, aiming to open up wider prospects for economic cooperation to serve the common interests of the two countries.
Officials in Oman noted that the strategic partnership is a huge step to developing one of the most promising vital projects in the energy sector in Duqm, which is expected to contribute to development in various industrial and socioeconomic sectors across the region in particular and the Sultanate in general.
The Kuwaiti partner is also keen on partnering with strategic companies to help develop promising projects, and continues to play a significant role in developing and diversifying regional and national economy.
They look forward to a successful partnership to continue envisioning and developing joint investment projects, serving mutual interests. Such a partnership will bring about new opportunities and prospects in the energyrelated sector.
The marketing campaign began some time ago and the matter of financing will be finalised in the upcoming period before awarding contracts to the company or group constructing the refinery by the end of this year.
The operational phase of Duqm refinery, which will cover an area of 900 hectares, will commence by the end of 2020 with a production capacity of 230,000 barrels a day, most of which to be exported abroad.
Some Omani officials have already confirmed the refinery was met with high acceptance from many global finance houses, especially with the presence of an important strategic partner like KPI, noting that the estimated cost of the refinery ranges from $6 to $7 billion, with 700 to 800 direct job opportunities, a figure that might increase due to the presence of a myriad of backup projects.
OOC is keen to research and cooperate with its strategic partners to translate its aspirations into developing the refinery project along with other investment projects in the region designed to contribute to the national economy, praising the efforts exerted by SEZAD in developing the infrastructures and offering incentives to attract investments to the region.
The importance of the strategic partnership with Kuwait in completing this vital investment project serves mutual interests and provides promising business opportunities for both sides, while OOC is taking necessary steps for implementing the company’s growth strategy, striving to integrate all its investment projects and enhancing added value resources through the development of the petrochemical industry in the Sultanate.