Kuwait Petroleum International (KPI) said it has signed a partnership agreement with Oman Oil Company (OOC) for the development of a major refinery and petrochemical complex in the Duqm Special Economic Zone (SEZ) in Al Wusta Governorate of Oman.
Duqm Refinery and Petrochemical Complex will be the biggest joint investment project in the SEZ, said a statement from KPI, the international subsidiary of Kuwait Petroleum Corporation (KPC).
The OOC is the sultanate's investment arm in the field of energy and related sectors.
KPC's chief executive Nizar Al Adsani said that the project offers a distinct incentive and a model example for oil investment in the Gulf region.
The refinery will develop Duqm into one of the major centres of oil investment on the regional and the world's scenes, stated Al Adsani.
On his part, Oman's Minister of Oil and Gas Mohammed bin Hamad Al Rumhi, who is also OOC chairman, said that the agreement embodies the distinct Kuwaiti-Omani bilateral ties, opening up fresh prospects for further cooperation to serve mutual interests.
This strategic partnership seeks to develop one of the promising vital projects in the SEZ, he added.
The agreement would play an effective role for achieving the sultanate's oil strategy, turning the SEZ into one of the world's major economic centres, remarked KPI's chief executive Bakheet Al Rashidi after signing the agreement with OOC acting executive managing director Hilal Al Kharusi in Muscat.
The Duqm Refinery will be established on a total area of 900 hectares. Once completed, the refinery will have the capacity to process 230,000 barrels of crude oil per day for both local and international markets.