Kuwait Petroleum Corporation (KPC) has signed a memorandum of understanding with Oman Oil Company to cooperate on the development of the Duqm Refinery and Petrochemical Complex.
The complex, located within the Duqm Special Economic Zone in Oman’s Al Wusta Governorate, is intended to process 230,000 barrels of crude oil a day for local and international markets.
Both sides aim to own, manage and operate a refinery and later a petrochemical complex at the site with equal shares in a joint venture.
KPC deputy chairman and CEO Nizar Al Adsani said the project would transform the area into one of the most important hubs for energy related industries in the region and signal new cooperation between GCC countries.
“This potential opportunity exemplifies the spirit of economic cooperation between our two great nations and helps achieve two major milestones, namely satisfying KPC’s strategy of investing in strategic markets, in regions that strengthen and consolidate KPC’s current markets and building strong economic ties with a sister GCC country,” he said.
Duqm Refinery and Petrochemical Industries Company was founded as a joint venture between Oman Oil Company and Abu Dhabi’s International Petroleum Investment Company (IPIC) in 2012.
Earlier this year, IPIC decided the proposed direction of the project did not fit its investment strategy and opened the way for new partners.
It will comprise of a 900-hectare site just north of the port of Duqm connected to a liquid jetty pipeline system designed to accommodate ships with a capacity of around 150,000 deadweight tonnes.
Levelling at the site has been completed and a final investment decision is expected to be taken in the second quarter of 2017.