Kuwait Petroleum Corp Chief Confirms Duqm Refinery Will Be Operational by Year-End

Kuwait Petroleum Corporation's (KPC) Chief Executive, Shaikh Nawaf Saud al Sabah, has confirmed that Duqm Refinery (OQ8), a major project in the Sultanate of Oman, is set to commence operations by the end of this year. The announcement was made during a video presentation on Sunday. Duqm Refinery, located in Oman's Special Economic Zone at Duqm (SEZAD), is a joint venture between OQ Group and Kuwait Petroleum International, the international subsidiary of KPC.

This US$7 billion project is one of the most significant in the Middle East's downstream sector and is projected to significantly enhance Oman’s industrial and economic capabilities. The refinery has a planned capacity of 230,000 barrels per day (bpd), processing a range of light, medium, and heavy crude oils. Its products will include diesel, jet fuel, naphtha, LPG, sulfur, and pet coke. The Duqm Refinery is expected to transform Oman's downstream sector, as it will not only leverage the country's strategic location but also drive its economic diversification strategy. "The full commercial operation of Duqm Refinery in Oman be will at the end of this year,” said Al Sabah. “Our (Kuwait) refining capacity from joint ventures in Oman, Italy and Vietnam will increase to more than 600,000 barrels per day.”

The refinery project is part of Oman's larger vision to develop Duqm into an integrated energy and industrial hub. Once operational, the refinery is expected to act as a catalyst for Oman's industrial sector, attracting downstream industries and promoting the development of ancillary businesses. The facility will also create direct and indirect job opportunities, contributing to the Sultanate of Oman's efforts to diversify its economy away from oil and gas. This aligns with Oman Vision 2040, which aims to create a sustainable and diverse economy. The Duqm Refinery is seen as a game-changer in Oman's economic landscape.

It signifies a significant shift towards downstream activities, underlining the Sultanate of Oman's efforts to diversify its economy and reduce dependence on oil revenues. The refinery will also position Oman as a key player in the global energy market, providing a strategic advantage due to its location on international trade routes. As the project nears completion, it is expected to contribute significantly to Oman's GDP, boost foreign direct investment, and foster new trade partnerships. The Duqm Refinery will play a pivotal role in shaping the future of Oman's economy while strengthening its position in the global petrochemical industry.