- Duqm Refinery is a joint venture between Kuwait Petroleum International and Oman Oil Company
Dammam, Saudi Arabia, 23 December 2018: The Arab Petroleum Investments Corporation (APICORP), a multilateral development bank, is pleased to announce a USD100m investment as part of a consortium of international and regional banks to finance the construction of Oman’s Duqm Refinery.
Situated within the Duqm Special Economic Zone the refinery is joint venture between Kuwait Petroleum International and Oman Oil Company. Duqm Refinery is a milestone project which will contribute to the transformation of Oman’s economy.
APICORP contributed USD100m to the financing of the refinery, USD50m sharia compliant, and USD50m conventional tranche. This is a demonstration of APICORP’s commitment to Oman with over USDD380m currently committed to the energy sector in country.
Today’s announcement continues APICORP’s collaboration with Kuwait, a 17% shareholder in APICORP, with a continued partnership in the financing of foreign investments in petrochemical projects such as MEGlobal in Canada and the Netherlands, and for Equipolymers in Switzerland, as well as the Nghi Son refinery and petrochemical plant in Vietnam.
Dr. Ahmed Ali Attiga, Chief Executive Officer of APICORP, commented: “We are delighted to be working with Kuwait Petroleum International and Oman Oil Company on this prestigious project—Duqm Refinery. As the Arab energy sectors most trusted financial partner, we look forward to further strengthening our existing partnerships with the governments of Kuwait and Oman. Once operational, the refinery will play a significant role in boosting Oman’s exports and will be a key driver for the growth of the region providing investment opportunities for new related projects.”
Mr. Nabil Bourisli, President of Kuwait Petroleum International and Chairman of Duqm Refinery commented said, “We are pleased to be working with APICORP on Duqm Refinery. This reflects the trust and confidence of local, regional and international financial institutions in our economic ties that are deeply rooted in history. Our vision is aiming at maximizing the value of our natural resources and driving the two countries towards expanding their economic potential, leading to balanced economic growth.”
Duqm Refinery is based in Al Duqm in the South East Al Wusta Governorate of the Sultanate of Oman. A strategic maritime location providing immediate access to international shipping lanes in both the Indian Ocean and the Arabian Sea, helps the process of transport in and out of the region and gives the project a significant competitive advantage. Duqm Refinery recently celebrated the laying of the foundation stone and the commencement of the USD5.75b construction work for the project. Once the refinery is completed, it will have the capacity to process around 230,000 barrels of crude oil per day. Its primary products will be diesel, jet fuel, naphtha and LPG.