Muscat – The Al Duqm Refinery, also known as OK8, in the Duqm Special Economic Zone in southern Oman, is one of the largest investment projects in the Sultanate. The refinery, inaugurated by Sultan Haitham bin Tariq of Oman and Kuwait’s Amir Meshal Al-Ahmad Al-Jaber Al-Sabah, represents a joint investment project between the two countries through OQ Oman Group and Kuwait Petroleum International Company.
Economic Gains
The refinery will increase Oman’s refinery production capacity from 230,000 barrels per day to 500,000 barrels per day.
According to economic analyst and academic Mohammed Al-Wardi, this area will achieve “significant economic gains,” enhancing the Duqm economic zone and serving as a cornerstone for marketing the region and attracting foreign investments.
The refinery also supports downstream industries, particularly those relying on refinery products such as liquefied petroleum gas, sulfur, and coal.
Additionally, a petrochemical project is expected to be established in conjunction with the refinery through a partnership between Oman, Kuwait, and Saudi Arabia represented by SABIC. Furthermore, the Al Duqm Refinery will contribute to enhancing and expanding the Omani economy, diversifying its economic structures, localizing economic projects, and creating job opportunities, according to Al-Wardi’s statement to Al Jazeera Net.
Oil storage station in Ra’s Markaz (Al Duqm Refinery for Petrochemical Industries)
Attracting Investment
Al-Wardi believes that the successful establishment of a refinery of this scale in the Duqm economic zone will enhance its competitiveness in attracting more local and foreign investments in the future. He points out that the refinery’s petroleum products will contribute to creating downstream industries based on the refinery products.
The refinery’s cost is approximately 9 billion dollars, making it one of the largest investment projects in Oman and among Gulf countries.
On his part, Muhaim Bin Bashir Al-Jarf, Deputy Chairman of the Omani Investment Authority and Chairman of the OQ Group, noted that the Al Duqm Refinery project reflects the depth of the strategic partnerships pursued by Oman, especially with Gulf Cooperation Council countries.
He told Al Jazeera Net that this refinery, in partnership with Kuwait, serves as a model for large projects, located in the Duqm area overlooking global shipping lanes.
Al-Jarf emphasized that the Al Duqm Refinery aims to maximize the utilization of natural resources, add high value to crude oil, and was established using the highest standards and latest technologies.
He added that the project is part of OQ Group’s investment strategy to add value to the Omani economy through diversifying investments. Additionally, the refinery’s integration with several strategic projects close to it qualifies it to become an industrial hub for various petrochemical and downstream industries in the region.
Product Export
According to a report from the Duqm Special Economic Zone obtained by Al Jazeera Net, the Al Duqm Refinery began exporting its products to global markets in 2023. High-sulfur fuel oil was exported between late April and mid-May 2023, while the first naphtha shipments were exported in June of the same year, and in September of the same year, the refinery started exporting high-quality diesel in accordance with international specifications.
The year 2023 witnessed the completion of trial operations for operating the refinery, testing all supply chains of the refinery including crude oil storage facilities in Ra’s Markaz, an 80-kilometer crude oil pipeline to the refinery, and testing the readiness of storage and export facilities for petroleum products at the Duqm port.
Liquid and bulk materials jetty for petroleum products export (Al Duqm Refinery for Petrochemical Industries)
Oil Storage Station
- The oil storage facilities of the refinery include 8 large tanks and floating platforms for oil import and export, subsea pipelines for oil reception and export spanning 7 kilometers, a pumping station to the tanks, control rooms, administrative offices for the company, and other security and safety facilities.
- The technical features of the station allow for blending different types of crude oil, loading and unloading ships in record time, providing customers with cost-saving logistics as a competitive advantage.
- The storage capacity in the first phase is 25 million barrels of oil, but the designated area of the station, covering 40 square kilometers, enables storage of around 200 million barrels of oil.
- The station received over 3 million barrels of Omani and Kuwaiti crude oil between January and September 2023, pumped from Ra’s Markaz to the Al Duqm Refinery through the oil pipeline.
- The Al Duqm Refinery is connected to the liquid and bulk materials jetty via the service corridor established to facilitate petroleum product exports. The corridor, with a length of 6.5 kilometers and a width of 37.2 meters, includes several facilities, appendages, and special parts ensuring the transfer of liquid petroleum products to the storage units at the oil jetty as the roads along the corridor were paved, and a bridge was constructed for pipes to pass through the Sai intersecting channels.
