The Oman government is pressing ahead with a planned refinery and petrochemical complex at the industrial city of Duqm, as part of a $6 billion joint venture with Abu Dhabi’s International Petroleum Investment Company (IPIC).
The project will see Oman capture significantly more of the value chain of the oil it produces in-country, but will likely see Oman’s total oil exports fall significantly, as the refinery will take 230,000 barrels per day (bpd) of crude when fully operational.
“Land has been reserved for the project at Duqm and it takes five years to complete the project,” said Eng Yahya bin Khamis al Zadjali, Head of Planning and Engineering, Duqm Special Economic Zone Authority, in the Times of Oman.
Al Zadjali also announced at a BankMuscat investor conference that the Oman Oil Company would be investing in a railway project to the UAE, and power and desalination plants at Duqm. A port expansion is underway, with Al Zadjali telling investors that eight berths at Duqm will be available by the end of this year, rising to 50 when the second development phase is completed.
