Kuwait Petroleum International (KPI) and the Oman Oil Company (OOC) on Monday signed a partnership agreement for cooperation in the development of Duqm Refinery and Petrochemical Complex in the Duqm Special Economic Zone (SEZ) in Oman's Al Wusta Governorate. This will be the biggest joint investment project in the SEZ, the KPI, the international subsidiary of Kuwait Petroleum Corporation (KPC), said in a press release.
The OOC is the Sultanate's investment arm in the field of energy and related sectors. The release quoted KPC's CEO Nizar Al-Adsani as saying that the project offers a distinct incentive and a model example for oil investment in the Gulf region. The refinery will develop Duqm into one of the major centers of oil investment on the regional and the world's scenes, Al-Adsani added.
On his part, Oman's Minister of Oil and Gas Mohammed bin Hamad Al Rumhi, who is also OOC Chairman, said that the agreement embodies the distinct Kuwaiti-Omani bilateral ties, opening up fresh prospects for further cooperation to serve mutual interests.
This strategic partnership seeks to develop one of the promising vital projects in the SEZ, he added. KPI's CEO Bakheet Al-Rashidi said the agreement would play an effective role for achieving the Sultanate's oil strategy, turning the SEZ into one of the world's major economic centers.
Al-Rashidi signed the agreement with OOC Acting Executive Managing Director Hilal Al-Kharusi in Muscat. The ceremony was attended by a host of officials from both sides. The Duqm Refinery will be established on a total area of 900 hectares. Once completed, the refinery will have the capacity to process 230,000 barrels of crude oil per day for both local and international markets.
The KPI was established in 1983 as the KPC arm for marketing and refining outside Kuwait. The state-owned OOC was established in 1996 to pursue investment opportunities in the wider energy sector both at home and abroad.