The Arab Petroleum Investments Corporation (APICORP), a multilateral development bank, has announced a US$100mn investment as part of a consortium of international and regional banks to finance the construction of Oman’s Duqm Refinery
Situated within the Duqm Special Economic Zone, the refinery is a joint venture between Kuwait Petroleum International and Oman Oil Company. Duqm Refinery aims to contribute to the transformation of Oman’s economy.
APICORP contributed US$100mn to the financing of the refinery, US$50mn sharia-compliant and US$50mn conventional tranche. This is a demonstration of APICORP’s commitment to Oman with more than US$380mn currently committed to the energy sector in the country.
The announcement continues APICORP’s collaboration with Kuwait, a 17 per cent shareholder in APICORP, with a continued partnership in the financing of foreign investments in petrochemical projects such as MEGlobal in Canada and the Netherlands and for Equipolymers in Switzerland, as well as the Nghi Son refinery and petrochemical plant in Vietnam.
Dr Ahmed Ali Attiga, CEO of APICORP, commented, “As the Arab energy sectors most trusted financial partner, we look forward to further strengthening our existing partnerships with the governments of Kuwait and Oman. Once operational, the refinery will play a significant role in boosting Oman’s exports and will be a key driver for the growth of the region providing investment opportunities for new related projects.”
Nabil Bourisli, president of Kuwait Petroleum International and chairman of Duqm Refinery, noted that the company aims to maximise the value of its natural resources and driving the two countries towards expanding their economic potential, leading to balanced economic growth.
Duqm Refinery is based in Al Duqm in the South East Al Wusta Governorate of Oman. A strategic maritime location providing immediate access to international shipping lanes in both the Indian Ocean and the Arabian Sea, helps the process of transport in and out of the region and gives the project a significant competitive advantage.
Duqm Refinery recently celebrated the laying of the foundation stone and the commencement of the US$5.75bn construction work for the project. Once the refinery is completed, it will have the capacity to process around 230,000 barrels of crude oil per day. Its primary products will be diesel, jet fuel, naphtha and LPG.
