Al Jazeera Net correspondent
Muscat – The OQ8 Duqm Refinery in the Duqm Economic Zone in the south of the Sultanate of Oman is one of the largest investment projects in the Sultanate. The refinery, which was inaugurated by Sultan Haitham bin Tariq of Oman and Emir Mishaal Al-Sabah of Kuwait, represents a joint investment project between the two countries, represented by Omani OQ Group and petroleum company Kuwait International. goes.
The refinery contributes to increasing the production capacity of Omani refineries from 230,000 barrels per day to 500,000 barrels per day.
According to economic analyst and academic Mohammed al-Wardi, the zone will yield “major economic benefits”, as it will strengthen the Duqm economic zone, and is considered an essential pillar for marketing the region and attracting foreign investment.
Refineries also contribute to supporting manufacturing industries, especially those dependent on refinery products such as liquefied petroleum, sulfur and coal.
It is expected that a petrochemical project linked to the refinery will be established in partnership between the Sultanate of Oman, the State of Kuwait and the Kingdom of Saudi Arabia, represented by SABIC. Furthermore, the Duqm Refinery will serve to strengthen and expand Omani. The economy, according to Al Wardi's statement to Al Jazeera Net, diversifies its economic structures, localizes economic projects and creates job opportunities.
Al-Wardi believes that the success of the Duqm Economic Zone in attracting a refinery of this size will enhance its competitiveness to attract more local and foreign investment in the future, noting that petroleum refinery products are vital for the manufacturing industries dependent on the refinery. Will contribute to making. product.
The refinery cost approximately $9 billion, and is considered one of the largest investment projects between the Sultanate of Oman and two Gulf countries.
For his part, Mulham bin Bashir Al Jurf, Deputy Chairman of the Oman Investment Authority and Chairman of the Board of Directors of OQ Group, points out that the Duqm Refinery project reflects the depth of the strategic partnership pursued by the Sultanate of Oman. Especially with the Gulf Cooperation Council countries.
He told Al Jazeera Net that the refinery – in partnership with the State of Kuwait – represents a model for larger projects, adding that it is located in the Duqm area, which overlooks global shipping lines.
Mulham bin Bashir Al-Jarf explained that the Duqm refinery aims to make maximum use of natural resources and add high value to crude oil. He said that the refinery was established as per the highest standards and using the latest technologies.
He said the project falls within the framework of OQ Group's investment strategy, which aims to capture added value to the Omani economy through diversified investments in addition to integrating the refinery with a number of strategic projects close to it, which will enable it to become one Makes one eligible. Industrial center for many petrochemical and downstream industries in the area.
According to a report issued by the Special Economic Zone in Duqm, a copy of which was obtained by Al Jazeera Net, the Duqm refinery is set to begin exporting its products to global markets in 2023, as it faced high- Sulfur fuel oil was exported. And in mid-May 2023, and in June. In the same year, the first consignment of naphtha was exported, and in September of the same year the refinery began exporting high quality diesel in accordance with international specifications.
The year 2023 saw the implementation of pilot operations to operate the refinery, which included testing of all supply chains of the refinery, including an 80 km long pipeline to transport crude oil to the refinery, crude oil storage facilities at Ras Markaz . and to test the readiness of facilities for storage and export of petroleum products in Duqm port.
oil storage station
- The refinery's oil storage facilities include 8 huge tanks and floating platforms for importing and exporting oil, a 7 km long undersea pipeline to receive and export oil, and a station to pump it to the tanks, along with a control room. In addition, the administrative offices of the company are included. , and other facilities related to safety and security equipment.
- The technical characteristics of the terminal make it possible to mix different types of crude oil and load and unload ships in record time, giving customers the possibility to save logistics costs as a competitive advantage.
- The storage capacity in the first stage is 25 million barrels of oil, but the area allocated to the station, which is 40 square kilometers, allows it to store approximately 200 million barrels of oil.
- From January to September 2023, the station received more than 3 million barrels of Omani and Kuwaiti crude oil, which was pumped from Ras Markaz to Duqm Refinery through the oil transport pipeline.
- The Duqm Refinery is connected to the liquid and bulk materials dock through a service corridor which was established with the aim of facilitating the export of petroleum derivatives. The corridor is 6.5 kilometers long and 37.2 meters wide. The corridor includes a number of facilities, service contracts, and special units and parts that ensure the transfer of liquid petroleum derivatives to storage units at the oil dock. Roads along the corridor were also paved, and a bridge was implemented to cross the pipes at the junction of the Sai and Juraf canals.