Tuesday , October 17 2017

Kuwait signs agreement for 230K bpd ‘refinery’ in Oman

KUWAIT CITY, April 10, (KUNA): Minister of Electricity and Water as well as the Minister of Oil Essam Al-Marzouq on Monday said that Oman’s Duqm Refinery has been designed so that it can receive full needs from Kuwaiti oil, by 100 percent.

The minister made the statement to KUNA after the Kuwait Petroleum International (KPI) and the Oman Oil Company (OOC) signed a partnership agreement for cooperation in the development of Duqm Refinery, as well as the Petrochemical Complex in the Duqm Special Economic Zone (SEZ) in Oman’s Al Wusta Governorate. The KPI and the OOC also signed in Muscat today the stock purchase agreement (SPA) of the partnership company, the Al-Marzouq added.

The OOC invited the KPI to invest in the refinery project, with total capacity of 230,000 barrels a day, after the economic feasibility studies and the initial engineering designs were already completed, he said. The two sides signed a MoU in November 2016 for the 50:50 joint equity venture, Al-Marzouq said, noting that the Kuwait oil will provide 65 percent of the refinery’s needs, and that it could be increased to 100 percent. A joint team from the two companies is now assessing the offers by contractors for the construction phase, as well as management of the refinery.

They are also working with a team from the international marketing at the Kuwait Petroleum Corporation (KPC) on the final touches of agreements on the oil sale and providing the crude. The KPI is the KPC’s international subsidiary, while the OOC is the Sultanate’s investment arm in the energy and energy related sectors

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