The cost of the Duqm Refinery is about $9 billion (Duqm Refinery Petrochemical Industries Company)

Muscat -

The OQ8 Duqm Refinery in the Duqm Economic Zone, south of the Sultanate of Oman, is one of the largest investment projects in the Sultanate. The refinery, which was inaugurated by the Sultan of Oman Haitham bin Tariq and the Emir of Kuwait, Mishal Al-Ahmad Al-Sabah, represents a joint investment project between the two countries, represented by the OQ Group. and Kuwait Petroleum International Company.

Economic gains

The refinery contributes to increasing the production capacity of Omani refineries from 230,000 barrels per day to 500,000 barrels per day.

According to economic analyst and academic Mohammed Al-Wardi, this zone will achieve “prominent economic gains,” as it will strengthen the Duqm Economic Zone, and is considered an essential pillar for marketing the region and attracting foreign investments.

The refinery also contributes to supporting manufacturing industries, especially those that depend on refinery products such as liquefied petroleum, sulfur, and coal.

It is hoped to establish a petrochemical project attached to the refinery in partnership between the Sultanate of Oman, the State of Kuwait, and the Kingdom of Saudi Arabia, represented by SABIC. In addition, the Duqm Refinery will work to strengthen and expand the Omani economy, diversify its economic structures, localize economic projects, and create job opportunities, according to Al Wardi’s statement to Al Jazeera Net.

Oil storage station in Ras Center (Duqm Refinery Petrochemical Industries Company)

Attract investment

Al-Wardi believes that the success of the Duqm Economic Zone in attracting a refinery of this size will increase its competitiveness to attract more local and foreign investments in the future, noting that the petroleum refinery products will contribute to creating manufacturing industries dependent on the refinery products.

The cost of the refinery is approximately $9 billion, and it is considered one of the largest investment projects in the Sultanate of Oman and between two Gulf countries.

For his part, Mulham bin Bashir Al Jarf, Vice President of the Oman Investment Authority and Chairman of the Board of Directors of the OQ Group, points out that the Duqm Refinery Project reflects the depth of the strategic partnerships pursued by the Sultanate of Oman, especially with the Gulf Cooperation Council countries.

He told Al Jazeera Net that this refinery - in partnership with the State of Kuwait - represents a model for large projects, adding that it is located in the Duqm region, which overlooks global shipping lines.

Mulham bin Bashir Al-Jarf pointed out that the Duqm Refinery aims to maximize the use of natural resources and add high added value to crude oil. He said that this refinery was established according to the highest standards and using the latest technologies.

He added that the project comes within the framework of the OQ Group's investment strategy aimed at achieving added value to the Omani economy through diversifying investments, in addition to integrating the refinery with a number of strategic projects close to it, which qualifies it to become an industrial center for many petrochemical and downstream industries in the region.

Export products

According to a report issued by the Special Economic Zone in Duqm, a copy of which was obtained by Al Jazeera Net, the Duqm Refinery began exporting its products to global markets in 2023, as it exported high-sulfur fuel oil between the end of April and mid-May 2023, and in June. In the same year, the first shipments of naphtha were exported, and in September of the same year the refinery began exporting high-quality diesel in accordance with international specifications.

The year 2023 witnessed the implementation of experimental operations to operate the refinery, which consisted of testing all of the refinery’s supply chains, which included crude oil storage facilities at Ras Markaz, an 80-kilometre-long pipeline for transporting crude oil to the refinery, and testing the readiness of facilities for storing and exporting petroleum products in the port of Duqm.

Liquid and bulk materials dock for exporting petroleum derivatives (Duqm Refinery Petrochemical Industries Company)

Oil storage station

  • The refinery's oil storage facilities include 8 huge tanks and floating platforms for importing and exporting oil, undersea pipelines for receiving and exporting oil with a length of 7 kilometers, and a station for pumping it to the tanks, in addition to control rooms, administrative offices for the company, and other facilities related to security and safety equipment.

  • The technical characteristics of the terminal make it possible to blend different types of crude oil, and to load and unload ships in record times, giving customers the possibility of saving logistical costs as a competitive advantage.

  • The storage capacity in the first phase is 25 million barrels of oil, but the area allocated to the station, which is 40 square kilometers, allows it to store about 200 million barrels of oil.

  • From January to September 2023, the station received more than 3 million barrels of Omani and Kuwaiti crude oil, which were pumped from Ras Markaz to the Duqm Refinery via the oil transportation pipeline.

  • The Duqm Refinery is connected to the liquid and bulk materials dock through a service corridor that was established for the purpose of facilitating the export of petroleum derivatives. The corridor is 6.5 kilometers long and 37.2 meters wide. The corridor includes a number of facilities and service annexes and special units and parts that ensure the transfer of liquid petroleum derivatives to the storage units on the oil dock. Roads were also paved along the corridor, and a bridge was implemented to cross pipes across the junction of the Sai and Jurf canals.

Source: Al Jazeera