Patmira: The opening of the refinery demonstrates the pioneering role of the Gulf region in leading the global oil and gas industry
Al-Sabai: It is distinguished by its important and vital strategic location that will serve the entire Gulf
The Duqm Refinery, which is located in the Wilayat of Duqm in the Al Wusta Governorate of the Sultanate of Oman, is considered an investment project among the Gulf Cooperation Council countries in the field of refineries and the petrochemical sector in general, as it was designed to refine heavy crude oil and process a wide range of mixed crude oils, in addition to the presence of an important facility for crushing units. Hydrocarbon and coal of various types.
The refinery is considered an Omani-Kuwaiti-Gulf partnership between the Sultanate of Oman and Kuwait. On the part of the Sultanate of Oman, it includes the Omani company OQ8, which is represented by OQ, while the Kuwait International Petroleum Company represents the Kuwait Partnership, known as KBI. This strategic partnership was formed in the Economic Zone (Duqm) to enhance Gulf cooperation in the refinery and petrochemical sector in the future.
In turn, economic expert Qais Al-Sabai, member of the Omani Economic Society, stated that the Duqm Refinery has several advantages, first, in terms of area, as it extends over an area of more than 900 hectares, which is equivalent to more than 2,000 acres, and its production capacity reaches 230 thousand barrels per day of Refining energy. It is expected that this production will increase with the passage of time and the refinery is activated day after day, through a prominent and effective activation.
He continued, the most prominent products of the Duqm Refinery include diesel, jet fuel, naphtha, and liquefied petroleum gas, in addition to the production of light to medium distillates with high efficiency, and jet engine fuel. The refinery includes three main units: the hydrocracking unit, the hydrodesulfurization unit, and the delayed coking unit. In addition to three additional units, which are the sulfur extraction unit, the hydrogen generation unit, and the microprocessing unit.
Strategic location
He added that the Duqm Refinery, which is located in the Sultanate of Oman, is distinguished by its important and vital strategic location. It is located in the middle of the Duqm Special Economic Zone, and it overlooks the main international maritime transport lines, whether in the Arabian Sea, the Indian Ocean, or the Arabian Gulf. This strategic location enhances the value of The refinery and its importance in the Sultanate of Oman because it is located on the western coastal side of the Sultanate, overlooking the Arabian Sea, and is about 600 kilometers from the Omani capital, Muscat, but its vital location makes it located in the middle of the economic region because it enjoys a central strategic location, as it overlooks the most important international maritime transport lines. In the Arabian Sea and Indian Ocean, in addition to its proximity to the Indian and African coasts, this location is considered highly fruitful for facilitating the movement of international maritime trade worldwide.
Al-Sabai added that the importance of the Duqm Refinery is evident in many aspects, most notably: Its role in enhancing economic cooperation between the Gulf states, and the largest investment between two Gulf states, exceeding nine billion dollars, which enhances economic opportunities and cooperation between the Gulf states in the refinery and petrochemical sector, and exploiting the strategic geographical location, as the refinery is located in a distinctive location that makes it close to international maritime transport lines in The Arabian Sea and the Indian Ocean, which facilitates shipping and transportation operations within and outside the region.
He pointed out that the transformation of the Gulf countries from importing countries to exporting countries enables the refinery to play an important role in achieving this transformation, as the raw fuel can be stored and transformed into final products for export to countries around the world, which contributes to strengthening the national and regional economy, and the Duqm project also contributes to Achieving the goals of the Gulf states in economic diversification and economic independence, and also provides opportunities for joint Gulf investment in the fields of energy, including clean, alternative and green energy, and contributes to strengthening economic cooperation between the Gulf states, and localizing economic projects by providing investment opportunities and cooperation between the Gulf states, and this It can enhance economic growth and create new job opportunities in the region, and contribute to strengthening the national and regional economy.
Al-Sabai confirmed that the Duqm refinery will have the capacity to refine 230,000 barrels of crude oil per day, in addition to its ability to store oil in Duqm. It is noteworthy that the total refining capacity of the Sultanate of Oman after the opening of the port of Duqm will reach more than half a million barrels per day, as the Sohar refinery has the capacity A refining capacity of 198 thousand barrels per day, and the Mina Al Fahal refinery 106 thousand barrels per day, in addition to the Duqm refinery, which has a refining capacity of 230 thousand barrels per day. Thus, the total refining capacity becomes more than half a million barrels per day.
Logistics services
He explained that the Duqm Special Economic Zone is now considered an integrated set of infrastructure for investment, as it includes a port and an airport, and provides advanced logistical services, in addition to a university and a college dedicated to teaching port sciences, energy and transformation industries. It also includes a network of streets and roads and advanced infrastructure in the medical and logistical fields and warehouses. It has a capacity sufficient for more than 200 million barrels, making it an ideal place for investment in the energy, petrochemical and logistics industries. In addition, it will have a major role as a global and Gulf center for trade and industry, and will constitute promising opportunities in the Sultanate of Oman and the Gulf countries in general, especially in the fields of petrochemicals and logistics. , which adds an additional advantage to this refinery at the national and regional levels.
He stated that the refinery has Gulf support and benefit. We must point out something important, which is that it is hoped to establish a petrochemical project attached to the refinery. This will be done in partnership between three Gulf countries, the Sultanate of Oman, the State of Kuwait, and the Kingdom of Saudi Arabia, represented by SABIC, in addition to In addition, it will work at this time to strengthen and expand the Omani economy, diversify sources of income and the national economy, diversify the various economic structures, localize economic projects, and create job opportunities for national and Gulf youth and workers, according to their capabilities, experience, and information.
He went on to say: The Duqm region will work to attract investments with a competitive ability to attract more investments, whether local, regional, Gulf, or foreign in the future. The petroleum refinery products will contribute significantly to the establishment of downstream industries that depend on the refinery products, making it an industrial center for many. Of the petrochemical and shipping industries in the region, pointing out that it began exporting its products to global markets in the year 2023, as the export of oil and high-sulfur fuel began at the end of April 2023, and in the middle of May 2023 as well, and in June 2023 the first jet shipments were exported, and in September 2023 it began exporting High quality diesel according to international specifications.
Storage station
Al-Sabai concluded his speech to “Al-Bilad” that the refinery today is ready and operating at full capacity, and contains a huge storage station, consisting of eight huge tanks and floating platforms for import and export, and contains undersea pipelines to receive and export oil with a length of more than seven kilometers. It also contains stations for pumping oil to the tanks, and administrative, security, logistical and electronic offices are available, in addition to storage, which currently amounts to about 200 million barrels of oil, making it capable of attracting more investments. Hopefully, this refinery will open new horizons for the Sultanate of Oman and the Gulf countries. To become a leader in the region and an effective contributor to achieving sustainable development.
For his part, the Omani economic analyst, Ahmed bin Salem Batmira, said that the opening of the Duqm refinery and petrochemical industries in the Al Wusta Governorate of the Sultanate of Oman in the Special Economic Zone in Duqm under the patronage of His Majesty Sultan Haitham bin Tariq the Sultan of Oman, and His Highness Sheikh Mishal Al-Ahmad, Emir of the State of Kuwait, reflects the role The pioneering role that the Arabian Gulf region plays in leading the global oil and gas industry, stressing that the project that was opened (Omani-Kuwaiti) is the first investment in the Gulf region with this financial size, which reaches about 9 billion dollars, which is considered a real Gulf and investment success story and will have a positive and beneficial return. On Kuwait and the Sultanate of Oman, calling on the Gulf Cooperation Council countries to invest in large investments between them and take advantage of their position.
He stressed that the establishment of the Duqm Refinery in the Sultanate of Oman in this vital region will revitalize Duqm, which is one of the most important and vital strategic regions due to its location and status, and constitutes a historical turning point in relations between the two countries and because it is located in the heart of global trade. He pointed out that it will serve the region in general, especially the Gulf Cooperation Council countries, by selling Oil after refining and working to facilitate the flow of trade between the countries of the Arabian Gulf region and the Asian and African markets without fear or delay for consumers, given that the refinery is located on the Indian Ocean and in the heart of the main maritime transport lines between the Strait of Hormuz and Bab al-Mandab, describing the port and location as strategic and an important investment gain for any country. Gulf or foreign projects, and building projects in them will save a lot of money, especially since transporting Gulf oil and gas through the Strait of Hormuz is very expensive as a result of insurance, distance, and other well-known reasons.
He appreciated what the Sultanate of Oman and the State of Kuwait have accomplished and their successful joint investment in the Duqm Refinery and the Petrochemical Industries Complex, which will raise the refining capacity of the Sultanate of Oman to about 500 thousand barrels per day instead of 250 thousand barrels currently, noting that Kuwaiti and Omani crude oil is distributed at a rate of 65% of Kuwaiti crude oil. It is supplied to the refinery in coordination with the Global Marketing Sector of the Kuwait Petroleum Corporation and 35% of Omani crude oil.
He pointed out that the Gulf countries could benefit from this refinery and its vital location in the future, because the design of the refinery is based on accommodating a lot of oil and refining whenever the need arises later, and that the Duqm region in the Sultanate of Oman is prepared to store more than 200 million barrels in the future and is the largest. In the Middle East, it is the safest and most stable, and also due to its proximity to the sea transportation ports of Asia, Africa, and then Europe, this refinery and others will have a positive impact on the Gulf market in general.
* Successful investment
He added: Investment in oil, gas and petrochemicals by the six Gulf Cooperation Council countries is a successful investment for the countries of the region, because crude oil is available to us instead of relying on others and sending and selling raw oil to countries without benefiting from its other derivatives. Today, the Sultanate of Oman and Kuwait are heading to increase income and benefit from… Other oil derivatives after refining, because the technology used in the Duqm Refinery project is considered the latest in the world, and the refinery’s products will be of high quality in accordance with international specifications and standards. This will allow the refinery to produce environmentally friendly oil derivatives, including liquefied petroleum gas and (naphtha), which are used as “feedstock” in projects. Petrochemicals, (kerosene – jet fuel), diesel, and others.
He said that this important project is the first giant project in the exclusive economic zone in Duqm between two Gulf countries in the oil sector and is an example of the convergence of economic interests and a sincere call to move towards integration and cooperation between the Gulf Cooperation Council countries in such joint projects that are carefully studied because of their great financial returns. On the countries and peoples of the region.
He continued, with the opening of the refinery and other upcoming projects that are under construction and some are under study, the Special Economic Zone at Duqm has become an important destination on the world map for green hydrogen projects and green industries. It is also a city characterized by a somewhat moderate climate, and is visited by many visitors, both investors, as the incentives… The benefits allocated to investors help in this, explaining that the Duqm Refinery constitutes an additional value to the global energy market by providing high-quality oil products, in addition to its major role in driving industrial development in the Sultanate of Oman and Kuwait and supporting daily energy consumption.
Patmira concluded his speech to Al-Bilad, saying that February 7, 2024 will remain a historic day for the Sultanate of Oman and the sister State of Kuwait with the opening of this large and important project for them and for the countries of the Gulf Cooperation Council, as it is the largest investment project between the Omani Akio Company and the Kuwait International Oil Company. The refinery and petrochemical complex represent two important tributaries. For the industrial sector in the Sultanate of Oman and will create many jobs for citizens of both countries.
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