Duqm Refinery set to change the Gulf energy landscape

HE Abdulsalam bin Mohammed Al Murshidi, the president of Oman Investment Authority (OIA)

Petrochemicals

Duqm Refinery, a joint venture between Oman Oil Company and Kuwait Petroleum International, is set to be inaugurated on 7 February in the presence of His Majesty Sultan Haitham Bin Tariq, and His Highness the Emir of Kuwait, Sheikh Mishal Al-Ahmed Al-Jaber Al-Sabah

Located along Oman's eastern shoreline, Duqm Refinery, or OQ8, features a daily refining capacity of 230,000 barrels of crude oil. Its strategic coastal position offers a distinct advantage, granting access to the major international maritime routes of the Indian Ocean and Arabian Sea. 

Said to be the largest investment of its kind between two Gulf countries, the refinery will produce a wide range of premium petroleum derivatives, including diesel, jet fuel, naphtha, liquefied petroleum gas, sulfur, and petroleum coke. The collaborative project between Oman and Kuwait aligns with Oman Vision 2040 and New Kuwait Vision 2035 goals. 

His Excellency Abdulsalam bin Mohammed Al Murshidi, the president of Oman Investment Authority (OIA), said that OQ8, the largest joint investment in the petrochemical and refinery industry between two Gulf Cooperation Council countries, is a culmination of the bilateral relations between the Sultanate of Oman and the State of Kuwait, reflecting the deep-rooted economic relationship and tying joint interests to new joint investments.

His Excellency also emphasised the role that the inauguration of OQ8 plays in paving the way for regional and global investment in Oman, especially in the Special Economic Zone at Duqm (SEZAD). 

Sheikh Nawaf S. Al-Sabah, CEO of Kuwait Petroleum Corporation (KPC), explained, “The launch of OQ8 marks a pinnacle of achievement for the Omani-Kuwaiti alliance. This collaboration not only merges our economic interests but also celebrates the profound connection and shared legacy that Oman and Kuwait hold.”

David Bird, CEO of OQ8 said, “OQ8 transcends its regional significance by incorporating unparalleled, state-of-the-art capabilities. Destined to be a cornerstone of national and global energy markets, it exemplifies our commitment to leading through innovation. This venture is a bold declaration of our vision to drive economic prosperity far beyond Oman's borders, setting new benchmarks for the industry and fostering growth across the region and beyond."

In alignment with its ICV strategy, US$2.4bn has been spent so far with local suppliers. Throughout the construction phase, OQ8 committed to ensuring that at least 20% of all goods and services continue to be sourced within Oman, bolstering the local economy. 

Utilising cutting-edge technologies and innovations, OQ8 is committed to environmental stewardship, with a focus on significantly reducing carbon emissions, recording a substantial 41.1% reduction in greenhouse gas emissions from 2021 to 2022.