Oman’s Duqm Refinery and Petrochemical Industries Co. (OQ8), a joint venture between state-owned OQ Group and Kuwait Petroleum International (KPI), said on Monday it has successfully passed a critical lender reliability test, allowing it to access shareholder guarantees worth around 1.54 billion Omani rials ($4 billion).
The refinery, which began commercial operations last year, said the test was a key requirement by financing institutions to demonstrate its ability to operate at agreed levels of efficiency and reliability over time.
“The successful completion of the test marks a significant operational milestone for the refinery and confirms our full contractual and technical readiness,” CEO David Bird said in a statement. “It reflects the strength of the partnership and lays the foundation for long-term growth.” Duqm Refinery, located in the Al Wusta region on Oman’s southeast coast, has exceeded 110% of its nameplate capacity, boosting output from 230,000 barrels per day (bpd) to 255,000 bpd. The facility reached full operational status within 10 months of completing mechanical works, the company said.
Mubarak al Naamany, Chief Financial and Commercial Officer of OQ8, said the project’s progress strengthens the joint venture’s ambition to establish Duqm as a regional refining and petrochemicals hub, aligned with Oman Vision 2040.
Azzan al Abdullatif, Chief Portfolio Officer at OQ, added that the refinery is helping position Oman as a growing energy center in the region. “Clearing the reliability test underlines the project’s strategic importance and enhances its appeal to global markets,” he said.
Chief Executive Officer of Kuwait Petroleum International (KPI) Shafi Taleb al Ajmi said the completion milestone confirms the refinery’s technical strength, calling it “one of the most advanced refining facilities globally.” Duqm is the first independent commercial refinery in the Middle East. The plant is designed to process a variety of crude grades, including Basra Heavy and West African blends, which allows it to optimize supply and improve efficiency.
The company said it operated at 100% utilization throughout 2024, exporting more than 4.1 million tonnes of refined products globally. Feedstock strategies have also helped reduce dependence on shareholder crude, enhancing commercial flexibility and profitability.
Duqm Refinery is also investing in sustainability and innovation. Since 2018, it has spent over $2 billion on local suppliers and allocated more than 2 million rials ($5.4 million) to social development programs. It said these efforts support Oman’s broader environmental and economic goals.
Source:
Oman Observer
