Oman, Kuwait celebrate ground-breaking of Duqm refinery

Oman, Kuwait celebrate ground-breaking of Duqm refinery
The Duqm refinery ground-breaking ceremony was held at the project site under the patronage of Sayyid Haitham bin Tariq Al Said, minister of heritage and culture, Sultanate of Oman.
Published: 29 April 2018 - 9 p.m.
By: Martin Menachery

Duqm Refinery and Petrochemical Industries Company officially broke ground for its 230,000 barrels per day refinery in Duqm.

The ceremony was held at the project site under the patronage of Sayyid Haitham bin Tariq Al Said, minister of heritage and culture, Sultanate of Oman. The event was attended by Dr Mohammed bin Hamed Al Rumhi, minister of oil and gas in Oman, and chairman of board of directors of Oman Oil Company, Bakheet Shabeeb Al Rashidi, minister of oil, electricity and water in Kuwait, and senior public and private sectors officials from both countries.

The project is considered the largest cross-border GCC investment in the downstream sector. Al Said prompted the ground-breaking ceremony to mark the launch of construction work for the project. Also, the project is planned to be the cornerstone for other downstream projects in the future.

The strategic partnership between Oman Oil Company (OOC) 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 the two brotherly countries.

“Oman Oil Company performs the role of a catalyst to develop industrial hubs and regions in Oman. 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 Company.

“OOC strives to integrate all its investment projects and aims to maximise value from Oman’s resources through the development of the petrochemical industry,” Al-Zadjali added.

“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 Company 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 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 state-of-the-art refinery will bolster the energy industry of the sultanate by strengthening the supply and production of diesel, jet fuel, naphtha, LPG, sulphur and pet coke as its primary products.

About 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. EPC package three consists of the product storage and export terminal in Duqm, crude storage tanks in Ras Markaz and the 80km 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.

Situated strategically in the South East of Al Wusta Governorate of the Sultanate of Oman, the project is positioned in a strategic maritime location. This gives the project a competitive advantage being in the path of international shipping lines in the Indian Ocean and the Arabian Sea, thereby easing the process of transport in and out of the region.

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 be created 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.

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