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MUSCAT: Oman Oil Company (OOC), the Sultanate’s investment arm in the energy and energy related sectors, and Kuwait Petroleum International Ltd (KPI), the international subsidiary of Kuwait Petroleum Corporation (KPC), on Wednesday signed a Memorandum of Understanding (MoU) to cooperate in the development of Duqm Refinery and Petrochemical Complex in the Special Economic Zone in Duqm (SEZD) in the Governorate of Al Wusta. This strategic partnership is part of the efforts being made to seek further investment opportunities that open doors to develop major industrial projects in Duqm.
The MoU was signed on behalf of OOC by Hilal bin Ali al Kharousi, Acting Executive Managing Director of Duqm Holding and Bakheet al-Rashidi, CEO of Kuwait Petroleum International Ltd (KPI), at Crowne Plaza Hotel in the Special Economic Zone in Duqm (SEZD). Yahya bin Said al Jabri, Chairman of the Board of Directors of the Special Economic Zone Authority at Duqm (SEZAD), Dr Darwish bin Saif al Muharbi, Vice-Chairman of Oman Oil Company, Isam bin Saud al Zedjali, CEO of OOC, Nizar al Adsani, Deputy Chairman of the Board and CEO of Kuwait Petroleum Corporation (KPC) and Ghanim al Otaibi, Vice-President, Asia, Kuwait Petroleum International (Ltd), and other officials were present at the signing ceremony.
Under the MoU, both parties are aiming to reach a long standing partnership to own, manage and operate a refinery and at a later phase, a petrochemical complex in Duqm. It is envisaged that both parties will own equal shares in a joint venture company for such purpose. The partners are exploring additional participation from strategic third parties. This project is amongst the Sultanate’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.
A 900-hectare site has already been allocated for the project and the levelling has been completed as per schedule.
The final investment decision (FID) is expected to be taken by the second quarter of 2017.
Isam al Zedjali, CEO of OOC commented on this MoU agreement saying: “OOC is keen on partnering with strategic companies to help develop promising projects, and continues to play a significant role in developing and diversifying the regional and national economy”.He added, “We look forward to a successful partnership with Kuwait Petroleum International to continue envisioning and developing joint investment projects, serving mutual interests. We also hope that this partnership will bring about new opportunities and prospects in the energy related sector”.
Nizar al Adsani, Deputy Chairman and CEO of Kuwait Petroleum Corporation (KPC) highlighted the importance of the MoU agreement, saying:
“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”.
Bakheet al Rashidi, CEO of Kuwait Petroleum International Ltd (KPI), stated: “In addition to the local Omani rich experience in the oil related industries, KPI’s ample international experience in mega refinery and petrochemical projects, which KPI will cross fertilise and bring about to the Duqm Project from its European and Asian operations, will further support and guarantee the success of the project and will create a pool of regionally trained work force for this project and future projects in the oil industry”.
The refinery once completed will have the capacity to process 230,000 barrels of crude oil per day that will serve both local and international markets.
© Oman Daily Observer 2016
