25-06-2012

JV company established to build new Duqm refinery and petrochemical complex

Oman Oil Company (OOC) and the International Petroleum Investment Company (IPIC), owned by the Government of Abu Dhabi, announced the formation of a joint venture (JV) company to own and manage the development of the planned refinery and petrochemical complex in Duqm. The company, Duqm Refinery and Petrochemical Industries LLC is owned 50/50 by OOC and IPIC.

The refinery, which is the first phase of the project, is expected to have a capacity of (230,000) barrels per day as it is expected to be completed by 2017 whilst the second phase of the project will focus on the development of a petrochemical complex.

In a statement, Nasser bin Khamis al-Jashmi, Undersecretary of the Oil and Gas Ministry and Chairman of OOC Board said that the development of the refinery and petrochemical complex is considered to be one of the most important investment projects as it will play a vital role in supporting the oil and petrochemical industries in the Sultanate due to the strategic location of the Duqm area, adjacent to one of the world's key shipping trade routes.

He added that the commitment showed by the two companies emphasizes the importance of the project in verifying the income of Oman and providing job opportunities for the National Omani cadres in the important developmental sectors.

On his turn, Khadem Abdullah al-Qubaisi, Managing Director of IPIC stressed the importance of the project for our two countries. "We are determined to put all necessary efforts to see the project is successfully commissioned in 2017 and there is no doubt our solid partnership with Oman Oil Company gives us confidence in achieving that," he added.

OOC is a commercial company wholly owned by the Sultanate's government as it was incorporated in 1996 to invest in the energy sector both locally and internationally. OOC plays an important role in the Sultanate's efforts to diversify the economy and promote foreign investment. As of 2012, the company's portfolio consists of 33 investments in 10 countries. The company's holdings are diversified across the energy value chain and include exploration and production, refining and marketing, petrochemicals, energy infrastructure, power, shipping and metals.

On the other hand, IPIC is a wholly owned by the Government of the Emirate of Abu Dhabi as its mandate is to invest in the hydrocarbon sector outside the Emirate of Abu Dhabi.  IPIC looks to earn a commercial rate of return on its investments and is a long-term equity investor. IPIC has become one of the leading companies in the field of petroleum and energy investment since its inception in 1984.  It plays an active role in the development of the petrochemical sector in Abu Dhabi through facilitating joint ventures, which benefit from the technology and operating resources of companies in IPIC's portfolio and Abu Dhabi's feedstock advantages.