Oman eyes listing Kuwaiti-Omani Duqm Refinery on stock exchange

Expansion plans for Duqm Refinery await Kuwaiti approval

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KUWAIT CITY, Feb 29: Oman OQ Petroleum Company is considering listing the Kuwaiti-Omani Duqm Refinery on the Omani Stock Exchange. This plan is contingent upon approval from the Kuwaiti side, represented by the Kuwaiti Petroleum International Company. If the Kuwaiti side agrees, Oman OQ Petroleum Company will prepare a study on the listing.

The sources emphasized that listing the Duqm Refinery on the stock market would enhance its importance and have a positive impact on stock market indicators. The refinery’s partners from both Kuwait and Oman envision increasing its production capacity to 270 thousand barrels per day. However, this expansion will occur after making payments to financial institutions, including local and international banks, as the Duqm Refinery is committed to repaying debts to 24 banks and international institutions. The interest shown by local and foreign institutions and financing agencies in funding the refinery reflects their confidence in the significance of the Duqm Refinery Project.

Additionally, it underscores the confidence of international financial institutions in the management expertise of both Kuwait and Oman in overseeing oil projects. The Duqm Refinery primarily focuses on diesel production, accounting for up to 60% of its output. The remaining percentage is distributed among other products such as naphtha, liquefied petroleum gas, petroleum coke, jet fuel, and sulfur. The construction of the refinery in Oman has also led to the development of other major projects, including an energy and water support project costing half a billion dollars, as well as a project for oil storage tanks amounting to $519 million.

Meanwhile, David Baird, CEO of the Duqm Refinery Company (OQ8), revealed to Reuters that the refinery may start refining additional grades of crude oil by the end of the year. This possibility is currently under study and was considered during the design process to enable the refinery to process heavier ores with higher sulfur levels. Baird expressed gratitude for the full support of both shareholders. Since its commencement of operations in May, the Duqm Refinery has exported 100 shipments, totaling about 4.1 million tons of products globally. Furthermore, a feasibility study is underway to establish a petrochemical complex in the Duqm Economic Zone, with potential participation from the Saudi Basic Industries Corporation (SABIC) alongside the existing shareholders. Baird noted that the feasibility study conducted throughout 2023 is nearing completion, with the Saudis expressing interest in joining the expansion.
By Najeh Bilal
Al-Seyassah/Arab Times Staff

This news has been read 961 times!

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