Oman Oil Company and Kuwait Petroleum Corporation have jointly laid the foundation stone for the $7-billion Duqm Refinery project in the sultanate, said a report.
Duqm Refinery will bolster the production of diesel, jet fuel, naphtha, Liquid Petroleum Gas (LPG), sulphur and pet coke as its primary products.
It also seeks advanced technology to manufacture clean, high-quality products in compliance with global standards for safety and the highest operational standards, it stated.
The giant project was launched on Thursday under the patronage of Sayyid Haitham bin Tariq Al Said, Minister of Heritage and Culture in the presence of senior officials including Oman Oil Company CEO Essam bin Saud Al Zadjali.
Bakheet Shabib Al Rashidi, Kuwait’s Minister of Oil, Electricity and Water, said the project was the first of KPC’s projects in Oman and hinted that there would be more projects coming up in the future.
"Kuwait supports integrated projects among the GCC countries," he stated, noting that there were subsequent projects, such as integrated petrochemical complex with the refinery project.
Speaking at the launch, Al Zadjali said Duqm Refinery and Petrochemical Industries project was a translation of Oman Oil Company's efforts to boost oil revenues and attract investments to the sultanate.
He pointed out that 50 per cent of the project, which is expected to be completed in 2022, was the share of OOC and was financed by the international credit agencies and commercial banks, indicating that the project will raise the investment portfolio of OOC, where it is expected to exceed $10 billion.
KPC's chief executive Nabil Mohammed Borsali said the Duqm project marked the beginning of a new era in the bilateral ties and opens up great prospects for the development of the oil sector in the two countries.
"The project, which will operate with a refining capacity of 230,000 barrels per day when it is completed, is the largest joint venture between two Gulf states in the Special Economic Zone of Duqm," he added.